Long 10yr short 1 yr

L

lucas991

Hey Guys,

This is my first post here. I wanted to make a betting on the spread between long term and short term treasuries narrowing. What is the best way to do this? I wouldn't mind buying futures since, because I am pretty much hedged to overall interest rate movements, I guess the broker is not going to ask me for a big margin. Any suggestions?

Thanks!
 
hey, thanks for the response. I figured out the weights using the PDAN function on bloomberg. go long on 0.59 TYs for every TU that I short. So since I need to get integers, I have to short 5 TUs and buy 3 TYs (2.95 ideally). I trade on InteractiveBrokers, I won't have to post margin for both right? I guess most of it cancels out somehow...

Thanks again
 
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