5 ETFs To Watch As 10-Year Treasury Approaches 5% Yield, Analysts Say It's Now A 'Buy'
Portfolio Pulse from Piero Cingari
The yield on 10-year Treasury bonds has surged to 4.98%, the highest level since mid-July 2007. Analysts from Morgan Stanley and Goldman Sachs see this as a buying opportunity, expecting yields to decrease to around 4.2%-4.3%. ETFs tracking the 10-year Treasury bond include US Treasury 10 Year Note ETF (UTEN), iShares 7-10 Year Treasury Bond ETF (IEF), and BondBloxx Bloomberg Ten Year Target Duration US Treasury ETF (XTEN). Leveraged ETFs such as Direxion Daily 10-YR Treasury Bull 3X Shrs (TYD) and Direxion Daily 10-YR Treasury Bear 3X Shrs (TYO) also aim to amplify the returns of the underlying 10-year Treasury bonds.
October 19, 2023 | 3:30 pm
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NEUTRAL IMPACT
The Direxion Daily 10-YR Treasury Bull 3X Shrs (TYD) aims to amplify the returns of the underlying 10-year Treasury bonds, which are currently experiencing a surge in yield.
As TYD aims to amplify the returns of the 10-year Treasury bonds, changes in the yield of the bonds could significantly impact the price of the ETF. However, the direction of the impact is uncertain as it depends on investor sentiment and other market factors.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
The Direxion Daily 10-YR Treasury Bear 3X Shrs (TYO) aims to amplify the returns of the underlying 10-year Treasury bonds, which are currently experiencing a surge in yield.
As TYO aims to amplify the returns of the 10-year Treasury bonds, changes in the yield of the bonds could significantly impact the price of the ETF. However, the direction of the impact is uncertain as it depends on investor sentiment and other market factors.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
The US Treasury 10 Year Note ETF (UTEN) tracks the 10-year Treasury bond, which is currently experiencing a surge in yield.
As UTEN tracks the 10-year Treasury bond, changes in the yield of the bond could impact the price of the ETF. However, the direction of the impact is uncertain as it depends on investor sentiment and other market factors.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
The BondBloxx Bloomberg Ten Year Target Duration US Treasury ETF (XTEN) tracks the 10-year Treasury bond, which is currently experiencing a surge in yield.
As XTEN tracks the 10-year Treasury bond, changes in the yield of the bond could impact the price of the ETF. However, the direction of the impact is uncertain as it depends on investor sentiment and other market factors.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Analysts expect yields on 10-year Treasuries to decrease, indicating that call options on the iShares 7-10 Year Treasury ETF (IEF) may present an appealing opportunity for investors.
The expectation of a decrease in yields on 10-year Treasuries suggests a potential increase in the price of IEF, as bond prices and yields move inversely. This could make call options on IEF an attractive investment.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80