Bond ETFs spike higher as equity markets drop and fear reenters global markets.
Most bond ETFs spiked higher today as equities swooned and the bond market rose over lower corporate earnings and fear of a global economic slowdown.
Two year Treasury bonds (NYSEAYRCA:SHY) set a record from direct buyers today as the U.S. auctioned $35 billion of two year dated securities.
Direct buyers are major institutions not included in the primary bidders group which have to bid at every auction and include names like Goldman Sachs, JP Morgan and Citigroup.
Bonds and bond ETFs have turned north in recent days as equities continue a significant sell off due to weak corporate earnings, trouble in the tech sector and dismal global economic forecasts. Today’s bad news came from DuPont and 3M and added to the gathering gloom generated by Microsoft, Google, GE and others. Dow Makes Largest Decline Since June
Aside from weakness at home, investors are still nervous over the never ending debt crisis in Europe, with Spain in the depths of a deep recession and its 10 year bond yield north of 5%. More Bad News From Spain
US Treasury Bond ETF Update:
iShares Barclays Treasury Inflation Protected Securities Bond Fund ETF (NYSEARCA:TIP): +0.21%, This ETF seeks to track the performance of the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index. The Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index reflects the performance of the inflation-protected sector of the United States Treasury Market
iShares Barclays 20+ Year Treasury Bond Fund ETF (NYSEARCA:TLT): +1.43%, This ETF seeks to track the performance of the 20+ Year United States Treasury Bond Market as reflected by the Barclays Capital 20+ Year Treasury Bond Index. The Barclays Capital 20+ Year Treasury Bond Index tracks the performance of US Treasury Bonds with over 20+ years of remaining maturity.
ProShares UltraShort 20+ Year Treasury Bond ETF (NYSEARCA:TBT): -2.84%, This ETF tracks the 2X inverse daily return of the 20+ Year US Treasury Bonds performance as reflected in the Barclays Capital 20+ Year Treasury Bond Index. The Barclays Capital 20+ Year Treasury Bond Index tracks the performance of US Treasury Bonds with over 20+ years of remaining maturity, while the ProShares UltraShort 20+ Year Treasury ETF (NYSERACA:TBT) tracks the inverse, 2X performance of the index on a day to day basis.
ProShares Ultra 20+ Year Treasury Bond ETF (NYSEARCA:UBT) +2.34%, This ETF is designed to rise or fall at 2X the daily moves of the Barclays U.S. 20+ Year Treasury Bond Index.