ProShares Short 7 10 Year Treasury (ARCA: TBX)

Latest news for ProShares Short 7 10 Year Treasury (ARCA:TBX)

ProShares Short 7 10 Year Treasury

The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the funds investment objective. The index includes publicly- issued U.S. Treasury securities that have a remaining maturity of greater than or equal to seven years and less than or equal to ten years and have $300 million or more of outstanding face value, excluding amounts held by the Federal Reserve. The fund is non-diversified.

ProShares Short 7-10 Year Treasury

Bill Ackman. Collage created using photo by Center For Jewish History, NYC on Wikimedia and engin akyurt on Unsplash

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Hedge Fund Guru Bill Ackman Bets Against US Treasuries, Expects 30-Year Yields To Surge To 5.5%

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Billionaire hedge fund manager Bill Ackman is shorting long-term U.S. Treasuries, specifically targeting the 30-year maturity. His prediction: yields <a href="https://www.benzinga.com/topic/bill-ackman">could skyrocket to 5.5%.</a> 
But why is he making such a high-stakes bet?
In a tweet published overnight, the CEO of Pershing Square Capital Management warned that U.S. long-term interest rates are still low given several structural changes in the economy that are likely to trigger higher long-term inflation.
&#8220;I would be very surprised if we don't find ourselves in a world with persistent 3% inflation,&#8221; Ackman said. 
<h2 class="wp-block-heading">Higher Debt, Deficits Warrant Increase In The Supply Of Bonds</h2>
Ackman said he expects an increase in the issuance of Treasuries as a result of the U.S. government&#8217;s massive $32-trillion debt and continuous large deficits. This comes at a time when the Federal Reserve is reducing its bond holdings through quantitative tightening (QT). 
&#8220;It is hard to imagine how the market absorbs such a large increase in supply without materially higher rates,&#8221; he said. 
<h2 class="wp-block-heading">Chart: 30-Year Treasury Yields Have Spiked Well Above 4%</h2>
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="862" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/03081710/US30Y_2023-08-03_14-16-50_c6269-1024x862.png" alt="" class="wp-image-80701" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/03081710/US30Y_2023-08-03_14-16-50_c6269-1024x862.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/03081710/US30Y_2023-08-03_14-16-50_c6269-300x253.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/03081710/US30Y_2023-08-03_14-16-50_c6269-768x646.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/03081710/US30Y_2023-08-03_14-16-50_c6269.png 1283w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">30-Year Yields Could Soon Rise To 5.5%</h2>
According to Ackman, Japan&#8217;s exit from yield curve control (YCC), as well as mounting concerns about US governance, fiscal responsibility and political polarization underlined by Fitch&#8217;s downgrade of the country&#8217;s credit, may all lead to higher long-term interest rates.
A stabilization&nbsp;in long-term inflation to 3%, rather than the traditional 2%, may put significant upward pressure on 30-year rates, which might soon reach 5.5%.
Ackman warns that quick increases in bond yields are not uncommon, and this appears to be one of those episodes.
&#8220;The best hedges are the ones you would invest in anyway even if you didn't need the hedge. This fits that bill, and also I think we need the hedge,&#8221; Ackman wrote. 
<h2 class="wp-block-heading">ETFs Using Short Strategies Against Treasuries</h2>
There are several exchange traded funds that allow investors to take short positions on U.S. Treasury securities:
<ul>
<li>Direxion Daily 20-Year Treasury Bear 3X (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TMW#NYSE">TMW</a>): A leveraged ETF aiming to provide three times the inverse daily performance of the NYSE 20+ Year Treasury Index.</li>
<li>ProShares Short 20+ Year Treasury (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TBF#NYSE">TBF</a>): Seeks to provide the inverse performance of the ICE U.S. Treasury 20+ Year Bond Index.</li>
<li>ProShares UltraPro Short 20+ Year Treasury (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTT#NYSE">TTT</a>): Offers three times the daily inverse exposure to the performance of the ICE U.S. Treasury 20+ Year Bond Index.</li>
<li>ProShares UltraShort 20+ Year Treasury (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TBT#NYSE">TBT</a>): Aims to deliver twice the inverse daily performance of the ICE U.S. Treasury 20+ Year Bond Index.</li>
<li>ProShares Short 7-10 Year Treasury (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TBX#NYSE">TBX</a>): Provides the opposite daily performance of the ICE U.S. Treasury 7-10 Year Bond Index.</li>
<li>Direxion Daily 10-YR Treasury Bear 3X SHRS (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TYO#NYSE">TYO</a>): A leveraged ETF designed to achieve three times the inverse daily return of the NYSE 10-Year U.S. Treasury Note Futures Index.</li>
</ul>
Now read: <a href="https://www.benzinga.com/government/23/08/33532529/us-credit-rating-cut-triggers-surge-in-treasury-yields-7-etfs-experience-wild-swings">US Credit Rating Cut Triggers Surge In Treasury Yields: 7 ETFs Experience Wild Swings</a>

ProShares Short 7-10 Year Treasury -1x Shares

Billionaire hedge fund manager Bill Ackman is shorting long-term U.S. Treasuries, specifically targeting the 30-year maturity. His prediction: yields <a href="https://www.benzinga.com/topic/bill-ackman">could skyrocket to 5.5%.</a> 



But why is he making such a high-stakes bet?



In a tweet published overnight, the CEO of Pershing Square Capital Management warned that U.S. long-term interest rates are still low given several structural changes in the economy that are likely to trigger higher long-term inflation.



&#8220;I would be very surprised if we don't find ourselves in a world with persistent 3% inflation,&#8221; Ackman said. 



<h2 class="wp-block-heading">Higher Debt, Deficits Warrant Increase In The Supply Of Bonds</h2>



Ackman said he expects an increase in the issuance of Treasuries as a result of the U.S. government&#8217;s massive $32-trillion debt and continuous large deficits. This comes at a time when the Federal Reserve is reducing its bond holdings through quantitative tightening (QT). 



&#8220;It is hard to imagine how the market absorbs such a large increase in supply without materially higher rates,&#8221; he said. 



<h2 class="wp-block-heading">Chart: 30-Year Treasury Yields Have Spiked Well Above 4%</h2>



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="862" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/03081710/US30Y_2023-08-03_14-16-50_c6269-1024x862.png" alt="" class="wp-image-80701" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/03081710/US30Y_2023-08-03_14-16-50_c6269-1024x862.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/03081710/US30Y_2023-08-03_14-16-50_c6269-300x253.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/03081710/US30Y_2023-08-03_14-16-50_c6269-768x646.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/03081710/US30Y_2023-08-03_14-16-50_c6269.png 1283w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h2 class="wp-block-heading">30-Year Yields Could Soon Rise To 5.5%</h2>



According to Ackman, Japan&#8217;s exit from yield curve control (YCC), as well as mounting concerns about US governance, fiscal responsibility and political polarization underlined by Fitch&#8217;s downgrade of the country&#8217;s credit, may all lead to higher long-term interest rates.



A stabilization&nbsp;in long-term inflation to 3%, rather than the traditional 2%, may put significant upward pressure on 30-year rates, which might soon reach 5.5%.



Ackman warns that quick increases in bond yields are not uncommon, and this appears to be one of those episodes.



&#8220;The best hedges are the ones you would invest in anyway even if you didn't need the hedge. This fits that bill, and also I think we need the hedge,&#8221; Ackman wrote. 



<h2 class="wp-block-heading">ETFs Using Short Strategies Against Treasuries</h2>



There are several exchange traded funds that allow investors to take short positions on U.S. Treasury securities:



<ul>
<li>Direxion Daily 20-Year Treasury Bear 3X (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TMW#NYSE">TMW</a>): A leveraged ETF aiming to provide three times the inverse daily performance of the NYSE 20+ Year Treasury Index.</li>



<li>ProShares Short 20+ Year Treasury (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TBF#NYSE">TBF</a>): Seeks to provide the inverse performance of the ICE U.S. Treasury 20+ Year Bond Index.</li>



<li>ProShares UltraPro Short 20+ Year Treasury (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTT#NYSE">TTT</a>): Offers three times the daily inverse exposure to the performance of the ICE U.S. Treasury 20+ Year Bond Index.</li>



<li>ProShares UltraShort 20+ Year Treasury (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TBT#NYSE">TBT</a>): Aims to deliver twice the inverse daily performance of the ICE U.S. Treasury 20+ Year Bond Index.</li>



<li>ProShares Short 7-10 Year Treasury (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TBX#NYSE">TBX</a>): Provides the opposite daily performance of the ICE U.S. Treasury 7-10 Year Bond Index.</li>



<li>Direxion Daily 10-YR Treasury Bear 3X SHRS (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TYO#NYSE">TYO</a>): A leveraged ETF designed to achieve three times the inverse daily return of the NYSE 10-Year U.S. Treasury Note Futures Index.</li>
</ul>



Now read: <a href="https://www.benzinga.com/government/23/08/33532529/us-credit-rating-cut-triggers-surge-in-treasury-yields-7-etfs-experience-wild-swings">US Credit Rating Cut Triggers Surge In Treasury Yields: 7 ETFs Experience Wild Swings</a>

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ProShares Short 7 10 Year Treasury

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Thursday, August 03, 2023

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