Bond funds rarely hold to maturity. The obvious next place to extract retail money will be when rates go up all of the funds go down retail sells and loses again. TBT is a good bet to hedge rising rates.
Also the employement report was much better than expected today.The buyers of this ETF must believe this means the fed will have to start raising interest rates sooner than expected.I believe that is why TBT is rallying today in a down market.
Good point. Also, people are not fleeing to the long treasury for safety as they apparently did yesterday.
If they aren't buying the 20 year bond for safety, what does that tell you about the sell off in the stock market today? It probably means that it is not panic induced anymore, but simply the large traders. They need the volatility -- traders can't make money in a one direction market and the market had been coasting for too long.