Treasury seeking: short US Treasuries using ETFs

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Loren Norton at Direxion looks at the opportunity to short US Treasuries using ETFs

  Over the last 10 years, the yield on the US Treasury two-year note has exhibited a high correlation to the targeted Federal funds rate. Although past performance is not indicative of future results, if this correlation continues the two-year note offers investors a proxy for the Federal funds rate, which is typically difficult to trade as an average investor. At some point, the expansion in the global economy is likely to predicate an increase in this rate, to combat inflationary pressures.  If the correlation between the two year and the Federal funds rate holds, much like it did i...

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