$TMF – when fed cuts the rate, what will be the impact on this ? Is my understanding (explained below) correct ?


If fed cuts rate, long term treasury will have higher yields than short term/newly issues. So they will be more in demand. So TMF will see increased demand over period and hence it will likely go up.

While this is a leveraged etf, and decay and other factors play a role, I am trying to understand effect of fed rate cut assuming all else constant.

Thanks for any inputs!


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