Recent content by et12

My understanding is that a flattener trade on a flattish but slightly upwards sloping yield curve has negative carry as we are paying more in the short end than receiving in the long end after accounting for the fact that we need to buy more short end bonds to keep our position DV01 neutral...

I recently read a trade idea that suggested the AUD short term yield curve would flatten. The author expressed his trade by paying June OIS and receiving August OIS. How does the trade work exactly? My guess is that he is entering into 2 separate contracts 1. June OIS - He pays fixed rate and...