How to short U.S Government Bonds?

Discussion in 'Trading' started by ZEAK, Jan 10, 2009.

  1. ZEAK

    ZEAK

    Marc Faber is saying that the trade for 2009 is to short US government bonds. How would one go about doing this? I know nothing of bonds or the bond market, so....will want to ease into this. Thanks
     
  2. cgar

    cgar

    Look at TBT
     
  3. ZEAK

    ZEAK

    So, if I am bearish on US government bonds, then I would go long TBT? Just want to make sure. Never dealt with an ultrashort ETF.
     
  4. Short EDV.
     
  5. ZEAK

    ZEAK

    So, I can just short any of the EFT's that are long government?

    EDV
    IEF
    PLW
    TLH
    TLT
    TLO
    TBT
    PST
     
  6. Shorting EDV is your best choice because it contains long term zero coupon bonds. If you go with TBT and PST you will have to be long on them.
     
  7. Futures exists. Been trading the ZB (30y) and ZN (10y) T-bond futures on CBOT/ECBOT back 4-5 years ago. The size is $100k per contract but the margin requirement is low. Maybe there is even minis available today.
     
  8. TBT is all over the blogoshpere and in newsletters everywhere ... its a very crowded trade right now.
     

  9. is TBT going to be like the skf? mean if you had the trade of 2008 (short finance stocks) and bought skf you where only up like 5-10%. so will you get screwed in tbt like the people who where right wanting to short finance stocks but only ended up making 10% while xlf was down like 60%
     
  10. Daal

    Daal

    I agree with these concerns. I wouldn't trust the 'financial engineering' of ETFs either
     
    #10     Jan 10, 2009