Direxion Daily 20+ Yr Trsy Bear 3X ETF
The reason for the current yield flattening in this cycle is lower expectations for inflation growth.
Factors leading to yield curves flattening There are multiple factors that can affect the shape of yield curves. Bonds (BND) with different maturities react differently to changes in economic conditions and expectations. For example, when the US Fed announces an interest rate hike, short-term bonds (SHY), which are to the left side of a yield curve, react […]
Higher interest rates affect bonds much more than stocks because interest rates and bond prices are inversely proportional to each other.
Retracting monetary accommodation on time is crucial as well. This was the chief reason why three dissents took place in the September FOMC.
Like their equity peers, bonds can be short-sold as well. You can do it by either shorting an ETF or investing in an inverse ETF.
The SPDR S&P 500 ETF (SPY) fell by 2.51% on Monday, September 28, 2015, while the Direxion Daily S&P 500 Bull 2X ETF (SPUU) fell by 4.95%.