Hedging short term bonds

[stevenpaul]

Now that rates are a bit higher, bonds are beginning to look like an investment to consider.

Hedging a bond purchase with short the equivalent futures contract makes some sense to me (e. g. buying a 2-year note and shorting the ZT).

But what futures contract could be used to hedge notes under six months? What would you use to hedge a six month, five month, or three month note?

 

[Overnight]

Now that rates are a bit higher, bonds are beginning to look like an investment to consider.

Hedging a bond purchase with short the equivalent futures contract makes some sense to me (e. g. buying a 2-year note and shorting the ZT).

But what futures contract could be used to hedge notes under six months? What would you use to hedge a six month, five month, or three month note?

As an FYI, you can edit your original post for up to an hour after you post it. No need to repost a new thread to make a correction. Mods have been notified for clean up. Poor Magma and his broom, hehe.

 

[stevenpaul]

I inadvertently posted the same thread twice. I tried to delete my second posting but didn’t see the option for doing so. Perhaps because it was the initial thread itself.