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Could this be the year? Ten-year Treasury yields start the year moving higher, up 7 basis points...

Could this be the year? Ten-year Treasury yields start the year moving higher, up 7 basis points to 1.82%. The early word on the fiscal cliff deal is it adds trillions to the deficit and raises taxes on nearly all households - nice work all around. A favorite trading vehicle for Treasury shorts, TBT +1.6% premarket.
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Comments (9)
  • youngman442002
    , contributor
    Comments (5129) | Send Message
     
    I think Bernanke will turn into the Bond Vigilante...
    2 Jan 2013, 07:28 AM Reply Like
  • The Geoffster
    , contributor
    Comments (4227) | Send Message
     
    Having had mixed results with TBT and leveraged funds in general, I prefer TBF.
    2 Jan 2013, 07:32 AM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    >>The early word on the fiscal cliff deal is it adds trillions to the deficit and raises taxes on nearly all households - nice work all around.<<

     

    Exactly as planned. America's transformation into a cut-rate and more irritating version of the America in The Hunger Games books continues apace.
    2 Jan 2013, 07:55 AM Reply Like
  • chopchop0
    , contributor
    Comments (4209) | Send Message
     
    TBT sounds great in theory, until you see the carnage that its left by investors trying to find that inevitable inflection point

     

    I think we need more proof than just *today*
    2 Jan 2013, 07:59 AM Reply Like
  • Drew Robertson
    , contributor
    Comments (362) | Send Message
     
    Would someone please explain the advantages of TBT over a short ZB future?
    2 Jan 2013, 08:51 AM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (557) | Send Message
     
    I don't think there's any question selling ZB futures is the better way to go, but many seem far more comfortable with an equity-like product as opposed to futures trading.
    2 Jan 2013, 09:00 AM Reply Like
  • kmi
    , contributor
    Comments (4527) | Send Message
     
    "Would someone please explain the advantages of TBT over a short ZB future?"

     

    The main differences, which I think you probably already know, are leverage, margin, daytrading balance requirements from your broker, and the fact that ZB has an expiration date.

     

    The question is similar when it comes to options vs futures. Bottom line really seems to be that for daytrading/scalping the futures work better, as they are more precise, whereas options seems better suited to swings and equities work best if the length of the holding period is unknown, since there is no expiration.
    2 Jan 2013, 02:41 PM Reply Like
  • Drew Robertson
    , contributor
    Comments (362) | Send Message
     
    Yup my thoughts as well. For serious bond bears, the real choice comes down to TBT vs ZB short (rolling at expiration) with tax consequences critical in the choice.
    2 Jan 2013, 02:55 PM Reply Like
  • Remyngton
    , contributor
    Comments (350) | Send Message
     
    forward curve's slope has changed very significantly over the last 3 weeks , should be an interesting and fun year
    2 Jan 2013, 11:07 AM Reply Like
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