JGBD and JGBS SUCK at tracking the underlying instruments. I bought JGBD when the 10 yr JGB had a yield of 0.35% and so far my JGBD has a gain of 3% despite the underlying bond yield having shot up to .0.75%..........total BS. Im aware that this ETN is largely valued on Implied Volatility but this is total garbage.
g_luck, you have to compare the price of JGBD to the price of the 10 years Japanese bond not the yield. that's first. second, jgbd spiked hard in april but that was due to no more issuance. so it went well above its indicative fair price. if you bought then, don't be disappointed, now it trades in line.
I think it's been reasonable since then. quite low risk actually and some very decent reward.
I did the same. I think it's got a shot at a big week as well. There has got to be billions of these bonds for sale and a long line behind that. I guess the BOJ will buy everything that comes in.....just for how long is the question.