Trade idea: TLT
TLT is a defensive ETF as it effectively captures the far end of the Treasury curve in a liquid, exchange traded package. Exclusively holding bonds with 20+ years to maturity, TLT is – by design – very sensitive to long-term interest-rate movements. It seems to us that TLT has gone into what we describe as a parabolic blow off top. The most obvious reason for this would be because TLT, as a bond ETF, is viewed as a safe haven asset in times of uncertainty. Corona-times are pretty uncertain times we would say. Hence the run to safety.