It is a money-making opportunity. But the amount of money you can make without extreme leverage is low.
You think? Think again.
The 7-10 year Treasuries funds soared 11% since mid-Oct. The 20+ year funds soared 18% since mid-Nov. They can all fall just as fast.
ProShares Ultrashort 20-year ETF crashed 43% since mid-June (1/3 of that was in the last 30 days!) The Ultrashort 7-10 treasury ETF fell 25% in a similar period.
Those 2X short treasury ETF’s can rise just as fast. They will. The tricky question is WHEN.
I’m reading Ben Bernanke’s old speeches now, and they imply a lot more Fed intervention (to lower US Treasury yields) could be headed our way.
