Hedging 7-10 year Treasure bonds with Barclays’ DTYS
This morning I took the plunge, buying equal amounts of IEF (93.10) and DTYS (52.95) this morning, with the goal of getting a low risk return of 1.7% annualized return or better. Before I bought I was surprised / dismayed to see that DTYS had fallen more per share than IEF had risen—casting doubt on my planned 1:1 hedging ratio. I looked back …
