Hi Capital Flows, for this long bond trade you are talking about ZN/10yr etc, does everything you are saying also apply for the 20-30 yr as well / ZB and TLT. Do you think this would be a way of capturing an even bigger move under the circumstances you are talking about for those who are not using futures?
i think longer out is fine. here is the thing though, i am careful taking a ton more duration risk until credit spreads get a bit higher and the shorter parts of the curve uninvert. so its all a tension. ZB is going to have more variance overall.
Dear Capital Flows, thanks for all your huge effort.
Markets do not have priced in a War with Russia now. What would happen to risk assets, and US bonds in case the war begins?
Hi Capital Flows, for this long bond trade you are talking about ZN/10yr etc, does everything you are saying also apply for the 20-30 yr as well / ZB and TLT. Do you think this would be a way of capturing an even bigger move under the circumstances you are talking about for those who are not using futures?
i think longer out is fine. here is the thing though, i am careful taking a ton more duration risk until credit spreads get a bit higher and the shorter parts of the curve uninvert. so its all a tension. ZB is going to have more variance overall.