Here's a chart of PST, it looks like it's forming a double-bottom there, so now might be a good time to take a Long position in the security ... or prepare to short regular Bond funds.
GL
GL
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How to short Treasuries
- Thread starter nravo
- Start date
I don't know enogh about the product to answer your questions honestly, you'd have to investigate them further with your broker.Quote from nravo:
Are these marked in price daily, or do they follow an index? If simply re-calibrated daily, how do you avoid daily negative compounding?
Most likely they are used primarly as speculative instruments so you may run into that problem. In which you would have to:
a) Actively manage your account by shorting the regular Long version of the ETF, or
b) Create a "similar effect" by managing a portfolio of bond and stock index funds (Google "Couch Potato Portfolio").
c) Find a mutual fund that engages in sophisticated bond trading strategies which includes shorting treasuries.
Is TLT the most liquid bond ETF?
Quote from MandelbrotSet:
You need to look into purchasing the TNX Exchange Traded Fund.
As it is an ETF of the ten-year bond yield, it moves opposite the ten year bond futures (ZN or TY depending on your broker).
Good Luck
Correct, we both agree it is indeed The Yield, but NOT an ETF, as you stated earlier, it's ok to be wrong you know!
el pollo
Yes, I do know what the negative daily compounding issue is with a lot of short and leveregated ETF's, and no seeing as how I don't trade them, I don't know what are directly for the short-term inverse fund that I mentioned, that's why I said you have to speak to your broker.Quote from nravo:
You don't know what the negative daily compounding issue is with a lot of short and leveraged ETFS?
I'm posting information.Quote from nravo:
And you're giving advice on here about ETFs?
It seems that there may not be a product for what you want to do, so, as you and the other readers can see, I took the time to make several suggestions to you as "work arounds".
You're welcome.
I know it as a the treasury yield.Quote from el pollo:
Correct, we both agree it is indeed The Yield, but NOT an ETF, as you stated earlier, it's ok to be wrong you know!
el pollo
I also thought there was a security that could be traded simply that mimics its performance, but after doing the due diligence last night on Google, it turns out that there is not a security which can be traded so simply.
***
Hope that answers both the question that you posted on this thread and your PM.
Here's a repeat of my suggestions to the work-around of your problem.
Quote from MandelbrotSet:
a) Actively manage your account by shorting the regular Long version of the ETF, or
b) Create a "similar effect" by managing a portfolio of bond and stock index funds (Google "Couch Potato Portfolio").
c) Find a mutual fund that engages in sophisticated bond trading strategies which includes shorting treasuries.
Quote from MandelbrotSet:
I know it as a the treasury yield.
I also thought there was a security that could be traded simply that mimics its performance, but after doing the due diligence last night on Google, it turns out that there is not a security which can be traded so simply.
***
Hope that answers both the question that you posted on this thread and your PM.
Do your due diligence next time before posting jibberish!