A large and unusually timed bet hit the U.S. Treasury market just before the Treasury Department announced an expansion of its buyback program. According to BlockBeats, the Pimco 25+ Year Zero Coupon U.S. Treasury Index ETF, traded under the ticker ZROZ, recorded $123 million in net inflows on Tuesday, the biggest single-day inflow in the fund’s history. The ETF, which has about $1.5 billion in assets, also saw trading volume rise to 5.2 million shares, nearly double its previous 2024 peak.
ZROZ holds STRIPS, or Separate Trading of Registered Interest and Principal of Securities, which are zero-coupon instruments created by splitting Treasury principal and interest payments. Because the fund carries an effective duration of about 28 years, it is highly sensitive to moves in long-end yields. In theory, a 1 percentage point decline in yields would translate into an about 28% gain in bond prices. The fund rose 3.2% on Wednesday, marking its biggest one-day advance since November 2024.
A large trade hit the long end of the U.S. Treasury market just one day before the Treasury Department announced a bigger buyback program, according to BlockBeats.
As long-dated Treasury yields rose quickly, one or more investors poured money into the Pimco 25+ Year Zero Coupon U.S. Treasury Index ETF, or ZROZ, a fund built to track long-end rate moves with high sensitivity.
ZROZ, which has $1.5 billion in assets, posted $123 million in net inflows on Tuesday, the largest in the fund’s history. Trading volume reached 5.2 million shares, nearly twice the previous high set in 2024.
The ETF mainly holds STRIPS, short for Separate Trading of Registered Interest and Principal of Securities. These are zero-coupon securities created by separating Treasury principal from interest payments.
The fund’s effective duration is about 28 years. Based on that duration, a 1 percentage point drop in yields would theoretically lift bond prices by about 28%, making ZROZ a highly rate-sensitive vehicle for positioning around long-term U.S. interest-rate moves.
ZROZ rose 3.2% on Wednesday, its biggest one-day gain since November 2024.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
