PST - Short Emerging Markets And US Bonds: Hedged With Potential For Both To Profit

• I think this is a great macroeconomically hedged pair trade with potential for both positions to succeed in one scenario while one or the other likely prevail in the other.
• Higher US rates spill over into emerging markets because of linkages in the global financial system.
• The way I am expressing the short emerging market trade is through call options on EDZ and EUM (emerging market inverse ETFs).
• The way I am expressing the short US Treasury price position is through call options on TYO and PST (US 10Y bond price inverse ETF).

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