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What do you mean "fair value" for bond futures? You want to find a way to calculate the price of the futures, given the cash mkt?

First of all, the question is too vague and the answer too complicated for there to be "the answer". I have a view, based on my understanding and experience in this mkt. Secondly, giving an answer in a concise way is only possible if you have a basic understanding of the TIPS and nominal...

Ah, sorry, maybe I mis-interpreted the terms "divergence" and "convergence"...

I am real and you should stop imagining demons in my head... I don't have any ideological political bullsh1t getting in the way of my thinking. You, on the other hand, are so blinkered by ideology that you don't see what is nearly obvious. As to the government not paying, last time I...

What part of my point did you not get? Did I not repeatedly state that I was not responding to the original article, but rather to the follow-up assertion? As to who is guilty and to what extent, I never suggested that the govt and the "sheeple" are blameless. However, do you not get the...

Buy t-bills... Or do the spread: sell munis, buy t-bills. Have to be careful with it, though.

No, I mean the Poles and the Hungarians that are bidding up CHF. I got nothing against the Scandies.

I did mean that.

Well, tbh, there's nothing specific, just random speculation that they been selling the more toxic periphs recently.

Stupid farkin' Poles and Hungarians. Bleedin' eeeeeejits!

Nah, I don't mean that sort of pork. Neither do I mean the PIIGS (although, if the rumors are true, the Chinese have been releasing some of that recently).

http://online.wsj.com/article/SB10001424052702304203304576447014217449574.html

Yeah, sure... To be honest, in my world I would be hard pressed to find actual "divergence" (as you refer to them) RV-type strategies. If I could, I agree, that would the RV dream.

Demonized? Bankers? You must be kidding, right? Have you actually followed the various mtge foreclosure dramas recently? Have you heard about the derailing of all attempts to increase capital buffers and make the industry more robust? It's good to know who the real banker apologists are...

The answer is that it depends... It definitely flattens, but how much is uncertain.

Something like that, I guess... It's really just all about trying to quantify the one "unknown unknown" which nobody has been able to properly deal with, which is liquidity. 2008 was an interesting time to observe the implosion of a whole variety of RV strats that were all based on a variety...

Yeah, for sure... You're providing liquidity into the mkt, which, essentially, means that you're short the "liquidity" option.

It normally turns out to be months... In reality, it's either until it works, gets too close (i.e. a fly that has the front contract as one of the wings isn't really a fly) or something fundamentally changes that makes me reassess the whole thing. That's why one of the most important metrics...

It's a very long story and it all depends on how much you know about TIPS to begin with.

That's why it's a cheeky low bid...