Ways to Be Short LT Treasuries

[haha]

This is not for immediate deployment, but for readiness.

To me it is absurd how low interest rates are now. If the US government were not funding the entire mortgage industry, and buying it's own debt via the Federal Reserve rates would quickly rise. Now may not be the time, as there is still much fear of continuing deflation. When this fear abates, here we go.

The promising ways I can think of are:

1)A direct short in the T-Bond Futures Market, or a put on T-Bond futures. (futures markets).

2) A short on TLT, an iShares LT year bond ETF, or a put on this issue

I don't like short ETFs or mutual funds, or double short, etc, as they appear to have a downward bias built into their design. Maybe shorting a 2x or 3x ETF might be good, for the reason mentioned for not wanting to be long this type of issue.

Any comments?

Ha

[brewer12345]

definately a possibility. I think the most efficient way to do this is via the futures market if you are willing to trade futures. Otherwise TLT options.

The other thing that comes to mind is a short of one of the agency mortgage REITs. NLY comes to mind, as most of their securities are 30 fixed pass-throughs financed with short term repos.

[haha]

Quote:

Originally Posted by brewer12345 definately a possibility. I think the most efficient way to do this is via the futures market if you are willing to trade futures. Otherwise TLT options. The other thing that comes to mind is a short of one of the agency mortgage REITs. NLY comes to mind, as most of their securities are 30 fixed pass-throughs financed with short term repos.

Thanks Brewer.

Ha