Inverse Bond ETF (TBT) Gets Murdered
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With U.S. treasure rates at historic lows, ETFs that are short on bonds have become increasingly popular in the last few years. The conventional wisdom regarding bond yields is that they can't get much lower, and contrarian investors have been lining up to short bonds while simultaneously going long yields, ergo the rise in popularity of inverse bond ETFs.
But these investors are learning the hard way that picking market tops and bottoms is not as easy as it looks, as U.S. bond yield have continued to collapse. With the yield on 10 yrs treasures reaching record lows, the so-called bond bubble is anything but over.
And while the idea of shorting bonds might be a good one, as always, timing is everything. With this in mind, ProShares UltraShort 20+ Year Treasury (NYSE: TBT) is taking a beating today and is down over 3 percent today and 50 percent in the last 12 months.
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But these investors are learning the hard way that picking market tops and bottoms is not as easy as it looks, as U.S. bond yield have continued to collapse. With the yield on 10 yrs treasures reaching record lows, the so-called bond bubble is anything but over.
And while the idea of shorting bonds might be a good one, as always, timing is everything. With this in mind, ProShares UltraShort 20+ Year Treasury (NYSE: TBT) is taking a beating today and is down over 3 percent today and 50 percent in the last 12 months.
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