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How can we short long treasury bonds via ETF and is it possible to do in INDIA?

April 26, 2017bonds ETF India possible short Treasury

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How can we short long treasury bonds via ETF and is it possible to do in INDIA?

1 Answer

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The bond ETFs are TBT for short 20-30 year tsy. TLT for long 20-30 year tsy. There are many ways to do this – buy the etfs outright, short TLT, buy TLT puts (options market), or sell TBT puts (options market). There are also a host of more exotic options strategies but I do not know if those are possible to do in India. But buying the ETFs should not be a problem. One other thing to consider is tax consequences. However, you are in a better situation than me to know about that.