Boost has launched Europe’s first 3x short fixed-income ETP on the London Stock Exchange.

The new ETP will track the index giving exposure to returns from holding US 10-year treasury futures.

“It’s very exciting to launch new products especially in new asset classes for the company. The launch of Boost US Treasuries 10Y 3x Short Daily ETP (3TYS) is a first for the LSE,” said Hector McNeil Co-CEO of Boost ETP.

With assets under management (AuM) of $7.9bn, short and leveraged debt ETPs tracking US treasuries represent the overwhelming majority of short and leveraged debt ETPs globally.

This year’s unwinding of quantitative easing in the US may have set a precedent for looming interest rate increases as the US economy continues to grow.

This, combined with the Fed’s confident tone to end quantitative easing by the end of the summer, has driven short and leveraged investors to cut their long position in treasuries by $659m and increase their short positions by $885m this year (to end of June 2014).

A strong bearish conviction in US debt is evident in the disproportionate allocation into short positions, which represent 90% of AuM in short and leveraged debt ETPs.

“Growing bearishness of short ad leveraged investors on fixed-income securities was evident in the $1.1bn in outflows from long positions, globally,” said Viktor Nossek, head of research at Boost ETP.

“Following these large redemptions, 92% of S&L fixed income ETPs’ AuM is now held in short positions, suggesting S&L investors remain overwhelmingly bearishly positioned,” said Viktor Nossek, Head of Research at Boost ETP.