10 yr Note calender spreads

[J-Law]

This coming Wed is the beginning of February and the start of a roll month in the treasuries.Anyone out there trading the March/June spread ???

If so, whats your view on the trade ??? I'm thinking higher rates fed and repo, thus a narrowing of the spread.

A bp for your thoughts ???



J-Law

 

[nazzdack]

All of the bearish news seems to be out there. They'll tighten 25 basis points Tuesday. Maybe they'll tighten one more time in April or May. The spread is making contract lows right now. If the GDP numbers are for real, the spread and the outright should rally. We'll see what happens.

 

[J-Law]

There was a 1/4 point bump up as expected. Thought I might see a narrowing of the spread..but it didn't go there.

A rise in the fed funds I would think wold make for a rise in the repo and thus a narrowing of the spread.

i guess it was priced in already inn that large sell off on the chart .

http://www.cbot.com/cbot/pub/page1/0,,447 TYDH06-TYDM06 2268,00.html?symb=FF&month=1!&year=&period=W&study=&study0=&study1=&study2=&study3=&bartype=Bar&bardensity=LOW