(DJAD) Lyxor US Treasury 10+Y (DR) - Ratings and Ratios

The Lyxor US Treasury10+Y (DR) UCITS ETF Dist is a passively managed index-tracking fund that replicates the Bloomberg Barclays US Treasury10+ Year Index, comprising US Treasury bonds with maturities over 10 years. The funds primary objective is to minimize the tracking error relative to the benchmark index, with an anticipated tracking error of up to 0.30% under normal market conditions.

To achieve its objective, the fund employs a monthly currency-hedge strategy for designated share classes to mitigate the impact of currency fluctuations between the share class currency and the currencies of the index components. The funds reference currency is the US Dollar (USD), and it is listed on XETRA under the ticker symbol DJAD.

From a technical analysis perspective, the funds price is currently at 87.58, indicating a potential oversold condition given its proximity to the 52-week low of 86.49. The short-term moving averages (SMA20: 88.78, SMA50: 91.34) suggest a downtrend, while the long-term SMA200 at 95.81 indicates a significant deviation from the long-term trend. The Average True Range (ATR) of 1.18 (1.35%) suggests moderate volatility.

Considering the funds underlying index and the current interest rate environment, it is likely that the US Treasury yield curve will continue to influence the funds performance. With the fund tracking long-dated US Treasury bonds, a flattening or inversion of the yield curve could lead to increased demand for these securities, potentially driving prices higher. However, if interest rates continue to rise, the funds net asset value may be negatively impacted.

Based on the available data, a potential forecast for the fund is that it may experience a rebound in the short term, driven by its oversold condition and potential demand for long-dated US Treasury bonds. However, the long-term trend remains bearish, and the funds performance will likely be influenced by the trajectory of US interest rates. With an AUM of 345.13M EUR, the funds liquidity and investor sentiment will also play a crucial role in determining its future performance.