trade idea: the good ol' long US10y bond, long S&P500

[Robert Morse]

I assume you know that the value of the bond changes as interest rates change and long bonds can be volatile. It is not a riskless trade.

true but we are talking about underlying 10 year bond auction, you pay at par and collecting 5% interest, not very exciting.

 

[mervyn]

I assume you know that the value of the bond changes as interest rates change and long bonds can be volatile. It is not a riskless trade.

That’s why I trade bond futures rather than buy underlyings. If anything, time to get in TLT.

 

[Robert Morse]

I don't follow. The future changes in price too and is leveraged so added risk. And, pay no interest.

That’s why I trade bond futures

 

[mervyn]

I don't follow. The future changes in price too and is leveraged so added risk. And, pay no interest.

high leverage and small margin, two things to die for, not 5% interest.

 

[tsfx]

Since this combo is trading in my favour really fast i will close it.

Sp500 +100pts (4179 -> 4279)
US10y +2.20 (105.25 -> 107.45)

Cheers.