$Direxion Daily 20 Year Plus Treasury Bull 3x Shares(TMF)$
As of writing, gold has decreased from its all-time high of 2,696.90, following an 11.5% rise in September, and is now retracing to about 0.85%.
Similarly, AI stocks have also pulled back. The 20-year Treasury, which had been declining for 10 consecutive days, halted its drop and began to rebound on Thursday. It appears that some savvy investors are reallocating their assets from gold and tech stocks back into Treasuries.
Before the Fed announced a 2 basis point rate reduction, the 20-year Treasury was trading at 4.2%.
The yield difference between the Fed rate and the 20-year Treasury was approximately 1.1% (5.3% - 4.2% = 1.1%). When multiplied by 19 years, this indicates a projected upside of about 20.9% for the 20-year Treasury.
By using a 3x leveraged ETF for the 20-year Treasury, potential profits could be amplified by around 62.7%.
In theory, every 1% drop in interest rates could lead to an approximate 20% increase in the value of the 20-year bond.
Modify on 2024-09-28 01:24
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