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Direxion 7-10 Year Treasury ETFs turn 17, traders weigh Fed bets
After a July jobs report that showed a 23,000-job loss, the article says futures markets are pricing higher rates into late 2026 and 2027, keeping traders focused on the daily yield swings.
ETF Trends discusses two leveraged Direxion bond ETFs, the Direxion Daily 7-10 Year Treasury Bull 3X Shares (TYD) and its bearish counterpart, the Direxion Daily 7-10 Year Treasury Bear 3X Shares (TYO), which turned 17 years old in April.
The piece links the renewed debate over the Federal Reserve’s next move to a disappointing July jobs report that showed the loss of 23,000 jobs the prior month. It argues that this data has “opened the door” to rate cuts, while some observers still see policy staying restrictive.
According to ETF Trends, TYD is designed to deliver 300% of the daily returns of the ICE U.S. Treasury 7-10 Year Bond Index, while TYO targets 300% of the daily inverse performance of that benchmark. The article also cites Street Stats on Fed rate expectations, saying futures markets were pricing a gradual increase to about 3.8% by November and roughly 4.1% by August 2027, before easing toward around 4.0% in 2028.
ETF Trends adds that the September 15-16 Fed meeting will be watched as officials balance persistent inflation against signs of labor-market weakening. It also references Morgan Stanley’s view that, as inflation normalizes, policy could be on hold this year and followed by two rate cuts in 2027, pointing traders to keep an eye on both the bullish and bearish leveraged products depending on the path of inflation and rates.