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Short Bets in $14 Billion Treasury ETF Say Yield Calm Will Break

TLT’s short interest rises to highest level in four years
Bonds in ‘holding pattern’ but volatility may loom, RBA says

By

Katherine Greifeld

April 6, 2021, 4:17 PM UTC

As Treasury yields stall near their prepandemic highs, investors are wagering that the tranquility will be short-lived.

Short interest in the $14 billion iShares 20+ Year Treasury Bond exchange-traded fund (ticker TLT) has climbed to about one-fifth of the shares outstanding, the highest since early 2017, according to data from IHS Markit Ltd. Bearish bets have risen from 7% at the start of 2021 amid the fund’s 13% year-to-date drop.