T-bonds as futures margin

One more question dottom, if the Fed is raising rates does it still make sense to buy 6 month t-bill, or would it make more sense to go with the shorter maturities? Presumably, once you buy a 6 month bill, you are locked in with that yield for 6 months? So one should go with a 4-week bill instead?
 
Originally posted by sasha1
One more question dottom, if the Fed is raising rates does it still make sense to buy 6 month t-bill, or would it make more sense to go with the shorter maturities? Presumably, once you buy a 6 month bill, you are locked in with that yield for 6 months? So one should go with a 4-week bill instead?
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If you think the Fed is going to raise rates, then your best bet is to wait until after the Fed meeting. If you think the fed is going to lower rates, then you should purchase your t-bills before the meeting. If you're not sure what is going to happen, the safe thing is to purchase short-term bills, like the 4-week bill. I prefer the 4-week bill b/c you can easily move your bills around as needed.

Just keep in mind the interest that you're getting on these t-bills is not *that* big a deal, and compared to the potential risk/reward of any futures trading, the overall impact of t-bill interest on your trading account should be minimal (with the exception of very conservative hedging/spread betting strategies). So it's just easier to go with 4-week bills, get some interest for your margin, maintain flexibility, and hope you never get a margin call!

Good luck,
dottom
 
I got to find a couple bokers who offer a t-bills for margin but I didn't find any so far to offer t -bonds.If you find atleast any one who accepts 2 year notes or so can you let me know I will look further and if I find any I will post it.Thank you.
 
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