Relentless Treasury Surge Spurs Reckoning as Cboe Delists ETN
- Funds betting against Treasuries have slumped as bonds surge
- Haven rush pushes 10-year yields to unprecedented levels
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To put it mildly, betting against the Treasury market has been a painful trade for the last two months. Now, securities offering quick entry into such positions via the stock market are facing an existential crisis.
The $451 million ProShares UltraShort 20+ Year Treasury fund, or TBT, plunged to the lowest since it was launched during the global financial crisis, before trading was halted. Meanwhile, the Chicago Board Options Exchange delisted the iPath US Treasury Long Bond Bear exchange-traded note, DLBS, Barclays Plc said in a statement. The $931,000 ETN had tumbled 70% in 2020 through Friday.