|Bid||26.90 x 900|
|Ask||29.71 x 1400|
|Day's Range||27.31 - 28.04|
|52 Week Range||17.77 - 34.86|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||44.74%|
|Beta (3Y Monthly)||10.55|
|Expense Ratio (net)||1.09%|
For traders, however, this creates an environment of volatility that can not only move equities, but also Treasury notes via these four Direxion Investments ETFs. Wednesday’s trading session saw benchmark Treasury yields decline as trade war uncertainty brought back more risk-off maneuvers from investors. As such, Treasury prices went higher, which appeased the bond bulls.
When interest rates rise, bond investors tend to get itchy, because the values of their fixed-rate bond holdings are suddenly worth relatively less than the yields on newly-issued bond instruments.Fortunately, certain fixed-income products potentially benefit from rising interest rates by investing in shorter-duration bonds and by employing interest rate swaps, convertible securities, floating rate bonds, and other alternative plays.
According to the latest edition of Direxion Investments’ The Xchange, it was leveraged Treasury-focused and gold miner exchange-traded funds (ETFs) that were white hot as investors piled into fixed income assets as part of a risk-off move to safe havens. As such, there was a lot of action to be had in leveraged funds like the Direxion Daily 20+ Year Treasury Bull 3X Shares (TMF) and the Direxion Daily 7-10 Year Treasury Bull 3X Shares (TYD) . “This explains the summer’s stampede-like rush to fixed income investments, particularly treasury notes.
Among the leveraged bond ETFs experiencing elevated activity were the Direxion Daily 7-10 Year Treasury Bull 3X Shares (NYSE: TYD) and its bearish equivalent, the Direxion Daily 7-10 Year Treasury Bear 3X Shares (NYSE: TYO) as well as the Direxion Daily 20+ Year Treasury Bull 3X Shares (NYSE: TMF) and the Direxion Daily 20+ Year Treasury Bear 3X Shares (NYSE: TMV). Some of that action has matriculated into September.
Last month, the yield curve inverted, meaning yields on 10-year Treasuries fell below the yields on 3-month T-bills. Historically, it has taken about six months for recessions to commence following yield curve inversion, but some market observers are betting this time will be different and with the yield curve back to normal some bond funds are benefiting. TMF attempts to deliver triple the daily returns of the ICE U.S. Treasury 20+ Year Bond Index while TYD seeks to deliver triple the daily returns of the ICE U.S. Treasury 7-10 Year Bond Index.
Italian bonds surged on Monday after Fitch Ratings decided to keep the country's bond ratings unchanged, avoiding a potential downgrade to junk status. Italian bond yields reached a fresh low within the past week as Fitch Ratings decided to keep the current BBB rating intact. “Fitch’s affirmation of Italy on Friday evening should take the edge out of downgrade fears for the upcoming Moody’s and S&P reviews,” wrote Commerzbank strategists led by Michael Leister.
In the meantime, Treasury yields rose, putting downward pressure on government bond prices on Friday. The Direxion Daily S&P500 Bull 3X ETF (SPXL) rose 10 percent on the strength of the Dow Jones Industrial Average gaining over 700 points, while the Direxion Daily 20+ Yr Trsy Bull 3X ETF (TMF) fell 3 percent. A flight to the safe-haven confines of Treasury debt has been a persistent trend the last few months, but the positive jobs growth data and Powell's comments provided the boost for stocks.
It is all but official that the bull market that was born in March 2009 is either running on fumes or essentially over. Traders renewed affinity for rate-sensitive longer-dated Treasuries has some aggressive traders flocking to the Direxion Daily 20+ Year Treasury Bull 3X Shares (NYSE: TMF). “Eligible securities must be fixed rate, denominated in U.S. dollars, and have $300 million or more of outstanding face value, excluding amounts held by the Federal Reserve.
Following the Federal Reserve interest rate decision on Wednesday to raise rates another 25 basis points, a flight to long duration government debt was apparent with Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF) gaining as much as 4 percent. As widely expected by the capital markets, the Federal Reserve raised interest rates to make it a fourth and final rate hike for 2018. The Dow Jones Industrial Average has lost over 3 percent year-to-date, while the S&P 500 has lost 3.79 percent.
With the Federal Reserve having raised interest rates three times this year, many fixed income investors are departing long-dated bonds and the related exchange traded funds. Some traders are taking that ...
The Dow Jones Industrial Average plunged almost 800 points on Thursday followed by another day of sell-offs in U.S. equities with a loss of over 500 points on Friday, confirming that a risk-off sentiment is being highlighted by a flight to government debt--a benefit for leveraged Treasury bull exchange-traded funds (ETFs) like the Direxion Daily 7-10 Year Treasury Bull 3X ETF (TYD) and Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF) . It's certainly welcome news for the bond markets as inflows of capital flood the fixed-income space, but to equities investors, it could be a sign of more pain to come. TYD seeks daily investment results equal to 300% of the daily performance of the ICE U.S. Treasury 7-10 Year Bond Index.