Bond Futures

Long at 110'125 just before the close. Think some folks I was with may have gotten '110 there. Intent was to hold through the open to maybe 11PM EDT. Took 110'180 and ran. After watching this all day, it just has a real violent feeling to me for some reason.

Geo.:eek:
 
from www.bondtalkpro.com

"even though the Fed committed itself to an accommodative stance, it did not commit to keeping the fed-funds rate at 1.0%.

For the bond market, the obvious vigor now brewing in the economy is leading many to believe that the Fed will be forced to raise interest rates early in 2004. With the 2-year T-note yielding just 1.80%, the prospect of an increase in the 1.0% fed-funds rate raises the risk of a further increase in market interest rates. In March 2002, when there was fear that the Fed's interest rate cuts were over and that a rate hike was next, the yield spread between the 2-year T-note and the fed-funds rate widened to as much as 200 basis points. This makes the current 80 basis point spread quite narrow and supports the notion that yields have further to climb. "
 
Well, looking at a long term cash chart, we're sitting just about at the upward sloping trendline. Went long this morning with a stop at 103 on a closing basis. Close below that, and the 3 year trend gets broken, and look out below.

20030808-2.gif
 
speaking of bonds

Chicago, IL – August 15, 2003 - The Chicago of Trade (CBOTÒ) today announced, in coordination with the Bond Market Association, trading in its Interest Rate Complex, both in its open auction and on its electronic trading platform, will close today at 1:00 p.m. (Chicago Time).
 
Interesting and very kewl.

Thanks for the info.

nitro
Quote from jessie:

Actually now one trader can do pit/screen arbitrage by himself in the CBOT pits with a hand-held.. The CBOT is encouraging their use for arb purposes in all of the pits.

Jessie
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Chicago, IL – August 15, 2003 - The Chicago of Trade (CBOTÒ) today announced, in coordination with the Bond Market Association, trading in its Interest Rate Complex, both in its open auction and on its electronic trading platform, will close today at 1:00 p.m. (Chicago Time).
More...
The blackout had a lot to do with that decision.
 
Does anyone know of a web site that can work out a bond price (yield) if the user inputs the bond yield (price)?

Also, what formula can I, the user, use to calculate these myself?

I am particularly interested in US Treasuries in reference to the above.
 
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