ZN ZB and NOB spread

L

londonkid

Hi guys

Anyone out there trading the treasuries? I am looking at the outrights but interested in monitoring the NOB spread to give me an edge.

Mainly trading the ZB as thick tick and low commissions.

ciao
 
I was just curious as to how monitoring the NOB spread gives the trader an edge in terms of trading the US T-Bond outright ?
 
Quote from bone:

I was just curious as to how monitoring the NOB spread gives the trader an edge in terms of trading the US T-Bond outright ?
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it's just something I monitor, at certain times it is clear to me that the spreaders will want certain things to happen and this can create a bias for me in the outrights. It's only a small factor that I sometimes use in specific situations.
 
Quote from londonkid:

Hi guys

Anyone out there trading the treasuries? I am looking at the outrights but interested in monitoring the NOB spread to give me an edge.

Mainly trading the ZB as thick tick and low commissions.

ciao
More...

Well, if your only trading one, and not the other its hard to get any edge out of it.

But if you are open to trading both, you can lean on the curve to decide which product a better chance to play out your trade.

steepening curve> long > trade note
steepening curve> short> trade bond

Flip it around for a smoothing curve.
 
Quote from addchild:

Well, if your only trading one, and not the other its hard to get any edge out of it.

But if you are open to trading both, you can lean on the curve to decide which product a better chance to play out your trade.

steepening curve> long > trade note
steepening curve> short> trade bond

Flip it around for a smoothing curve.
More...

yeah i follow, i trade both ZN & ZB, just more of the ZB as it's more economical for commissions.
 
Quote from londonkid:

so who is the big fish in the ZN who flips the 2000 contracts. nice bait and switch.
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Ahh the T-note. I basically watch it 24/7 as I trade big shifts (around 16 to 18 hrs a day). Every day I see the price action transform from its low volume asian-market session stuff, to the Euro session Bund correlation stuff, up to the U.S.A cash with the heavy duty loaded up bids and offers.

The 2000 flips etc. in the Tnotes is its basic price action bs. Someone experienced in it is trading the meta game. Its either that, or the market maker, trying to catch people trying to make an extra an tick. Its nasty when it happens as it can send the Tnote to reverse for another 1-2 more ticks so this b*stard can re-enter his position and then pull his bid on the way down.
 
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