Are ETF Traders Seeing A Treasury Bond Bubble? (TBT, TLT)

“So the recent pullback in Treasurys has pushed a long-term bond ETF down to its 50-day moving average.  When I was checking out the list of largest ETFs by assets to see where (NYSE:TLT) ranks, I was surprised to see it’s smaller than ProShares UltraShort 20+ Year Treasury (NYSE:TBT). TBT is a so-called leveraged inverse ETF that profits when long-term Treasury bonds decline. At the end of August, (NYSE:TBT) had assets of $4.2 billion, compared with $3.2 billion for (NYSE:TLT), according to the latest data from the National Stock Exchange,” John Spence Reports From Market Watch.

Spence goes on to say, “Also, buying patterns show ETF traders are betting on a decline in Treasury prices. Through August, (NYSE:TBT) had year-to-date net inflows of $2 billion. (NYSE:TLT) had YTD inflows of only $283 million, while investors pulled $426 million from the ETF in August. The ETF market, at least, seems to think there is a bubble in Treasury bonds.”

Take a look at our category on each ETF for more in-depth articles below:

ProShares UltraShort 20+ Year Treasury (NYSE:TBT)  Visit Our (TBT) Category: HERE

iShares Barclays 20+ Year Treas Bond (NYSE:TLT)  Visit Our (TLT) Category: HERE

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