Sunday, June 21, 2009
What's the Best Way to Short Treasurys?
Von Pepe sends these articles (here and here) on ways to short U.S. Treasurys.
If anyone has free time and a Bloomberg, can you give us some scenarios with current prices? E.g. I'm interesting in statements like: "If you buy this particular put option on 10-year Treasury futures, then on January 2, 2011, so long as yields haven't fallen, you break even. And if the yield goes up by 50 bps, your return is 15%."
In other words, don't just tell me, "The market isn't forecasting serious price inflation." Tell me the specific wagers that are available, given current prices of various derivatives.
If anyone has free time and a Bloomberg, can you give us some scenarios with current prices? E.g. I'm interesting in statements like: "If you buy this particular put option on 10-year Treasury futures, then on January 2, 2011, so long as yields haven't fallen, you break even. And if the yield goes up by 50 bps, your return is 15%."
In other words, don't just tell me, "The market isn't forecasting serious price inflation." Tell me the specific wagers that are available, given current prices of various derivatives.
Comments:
TBT has been the most obvious trade of late. You have missed most of the easy money at this point. It was my biggest position much of the year. You need to understand how daily leverage works when trading these.
Post a Comment
# posted by 
: June 22, 2009 at 5:39 PM
: June 22, 2009 at 5:39 PM Subscribe to Post Comments [Atom]
<< Home
Subscribe to Posts [Atom]