What do the traders here watch to see the correlation between
hte stock and the bond market ?
Assuming SPX as the proxy for the stock market, should one
be using TYX, TNX or perhaps something else ?
Also, I see that the T-notes etc are traded in the futures
market on a par basis, 100 etc. How does one understand
this by just looking at the price action of TYX ? For eg. there
is almost a 1 to 1 correlation between the SPOT and futures
for the SPX. I assume some such correlation exists between
the TYX and the bond futures.
I don't neccessarily need a detailed answer. A pointer to
some books, online sources will suffice. Thank you.
hte stock and the bond market ?
Assuming SPX as the proxy for the stock market, should one
be using TYX, TNX or perhaps something else ?
Also, I see that the T-notes etc are traded in the futures
market on a par basis, 100 etc. How does one understand
this by just looking at the price action of TYX ? For eg. there
is almost a 1 to 1 correlation between the SPOT and futures
for the SPX. I assume some such correlation exists between
the TYX and the bond futures.
I don't neccessarily need a detailed answer. A pointer to
some books, online sources will suffice. Thank you.