The US economy continues to demonstrate resilience, with underlying drivers of consumption supporting retail sales despite a slight miss in expectations. Lower mortgage rates and easing bank-lending conditions for consumer loans are key factors bolstering consumer spending. These dynamics, coupled with the high average duration of mortgages, have mitigated the impact of Federal Reserve rate hikes, allowing consumption to remain robust even as pandemic savings dwindle. This sustained consumer activity is crucial in maintaining economic growth and supporting higher yields.
The Direxion Daily 20+ Year Treasury Bear 3X Shares ETF (TMV), which aims to provide triple the inverse exposure to the daily performance of the ICE U.S. Treasury 20+ Year Bond Index, reflects these market conditions. As of 08:51 on January 16, TMV is trading at $41.25, up from its last close of $40.75, nearing its 52-week high of $43.49.