NEW YORK (TheStreet) -- The ProShares Ultra Short 20+ Year Treasuries ETF (TBT) is a way to short the 20+ year U.S. Treasury bond at the rate of the change in that daily price at two times the inverse of that change.
Over the past 52 weeks, TBT has traded between $38 and $60. That rather wide price range has been indicative of just how volatile at times the U.S. Treasury bond market has been. And now, perhaps, once again, the Federal Reserve in its infinite wisdom is about to step on the volatility gas pedal, as it must soon decide to raise interest rates -- or not!
While I think that interest rates at this paltry level is beyond surreal, the fact remains that the bond, and especially stock market, are fixated over what amounts to a very small increase in rates. But, who am I to get into the way of permabears trying to scare the crap out of the sheep that follow them? In fact, let the fun begin, and let this current generation have a taste of borrowing money at such uber-high rates of say, 4% or 5%.
Oh, shudder, the fear of that reality as believing savers might actually get a decent return on their cash horde. They are those who have been slapped by the Fed, after first making all that cash, and then hoarding it in their proverbial mattresses for a decade now. Why, they might finally be rewarded for doing so if rates do rise.