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.
What it is telling me is the long treasury is way overbought. People would rather park their money in cash or money markets instead of buying into an over valued stock or treasury market.Almost always panic buying or selling is a bad move.