Equivalent ETF to hedge 10-year treasury rates?

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Updated April 9, 2015

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Equivalent ETF to hedge 10-year treasury rates?

randomengineer · 2015-04-09T14:23:15-04:00

Because of my other recent post regarding IB, I'm looking to hedge against rising thirty-year mortgage rates. Would buying an appropriate number of puts on something like IEF (iShares Barclays 7-10 Year Treasury Bond Fund ) be a close enough hedge to accomplish this? I was originally going to buy puts on the 10-year treasury futures until I discovered the ridiculous cash on hand requirements from Interactive Brokers to buy puts.

April 9th, 2015, 02:23 PM	#1 (permalink)
randomengineer Chicago, IL USA Posts: 10 since Apr 2015 Thanks Given: 6 Thanks Received: 0	Because of my other recent post regarding IB, I'm looking to hedge against rising thirty-year mortgage rates. Would buying an appropriate number of puts on something like IEF (iShares Barclays 7-10 Year Treasury Bond Fund ) be a close enough hedge to accomplish this? I was originally going to buy puts on the 10-year treasury futures until I discovered the ridiculous cash on hand requirements from Interactive Brokers to buy puts.