DTYSiPath US Treasury 10-Year Bear ETN
DTYS Fund Description
The iPath U.S. Treasury 10-Year Bear ETN provides inverse, constant-dollar exposure to an index tracking the yield of the cheapest-to-deliver bond for 10-year US Treasury futures.
DTYS Factset Analytics Insight
By forgoing a constant daily multiple like -1x or -2x, DTYS breaks from the pack in its inverse exposure to long-term Treasury moves. The exposure multiple varies because the note delivers constant dollar exposure—rather than a constant daily multiple—to changes in the yield of 10-year US Treasury bonds. The underlying index is straightforward: A 1 bp change in yield results in a 1 point move in the index. DTYS' value then changes by 1/10 of the daily point change in the underlying index, after expenses. As such, the percentage move in the note is directly tied to the relationship between the unleveraged index level and note value from the previous day. The effective leverage factor for any given day is the ratio of the previous day's index value to that day's note value, divided by 10. This leverage factor will change daily, decreasing on days when the note increases in value, and vice versa. DTYS charges a reasonable fee for the space—especially significant here because DTYS is meant to be held longer than other leveraged products. However, it should be traded with care: volume is middling and spreads can be extremely wide.
DTYS CHARTS AND PERFORMANCE
DTYS Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of DTYS. DTYS is rated a 5 out of 5.