A Short Trade Setup for TLT

Over the past two months, long-term U.S. Treasuries have gradually softened and yields have perked up. Today, the yield on the long bond sits at 3%, considerably higher than both last summer's sub-2.5% figure and November's lows beneath 2.75%. Rates have crept higher despite a third round of quantitative easing and the Federal Reserve's stated intent of driving them lower.

Then again, if we look at the long bond's yield on a short-term basis, rates are moving lower. On Jan. 4, the 30-year Treasury yielded 3.11%, so it has come off 11 basis points since then. What will the next move in interest rates hold? Are rates about to go higher or lower? Using the iShares Barclays 20+ Year Treasury Bond (TLT) exchange-traded fund as a substitute for long-term Treasuries, we can infer the next direction of bond prices and rates....383 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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