ProShares UltraShort Lehman 20 plus Year Treasury (TBT) $52.41 +4.59%

| May 7, 2009 | 0 Comments More

Call volume picked up in the ProShares UltraShort Lehman Bond Fund (TBT) Thursday following a dismal showing at an auction of $14 billion 30-year bonds. The news sank bonds, and the equity market faltered as well, as the poor showing suggests poor demand for Treasurys and that the government’s cost of capital could start to rise (Link to related story). TBT, which is an exchange-traded fund that moves (200%) the inverse the iShares Long Term Bond Fund (TLT), rallied $2.30 to $52.41 and options volume rose to 3X normal levels, with 40K calls and 19K puts traded.

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About the Author (Author Profile)

Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.