Friday's Nonfarm Payrolls report was insanely strong, yet yields (interest rates) didn't move. Good economic news usually spikes yields because it means the Federal Reserve is more likely to raise interest rates. The fact that yields merely yawned immediately following the report was a perplexing disconnect. However that changed on Monday when yields spiked. The 10-year yield is up 4.29% to 1.424%, a strong reversal. This likely means a near-term bottom is in on rates. Thirteen Federal Reserve Presidents are speaking later this week and based on Monday's price action in yields, it appears the market is starting to expect hawkish commentary.
Buying the ProShares UltraShort 20+ Year Treasury (NYSE:TBT) will give you exposure and profits if yields continue to rise. Notice that Monday's pop is a reversal from Friday's strange drop. This is a technical bullish reversal and tells traders more upside is likely for the rest of the week.
