Monday, February 27, 2006

Bonds


Here is an hourly chart showing pit trading in the March T-bond futures. I shall be switching to the June contract tomorrow but because the yield curve is slightly inverted there is no spread between the March and June contracts.

It looks to me like the market is about to break downward out of the past month's trading range. There will probably be a brief stop near 111-16 but I expect to see the bonds trading near 110-12 very soon.

1 comment:

Anonymous said...

I am fairly new in futures, but don't we earn the premium decay when we are short. If so, then wouldn't we want the most premium possibe be in the future when we bought it?

Bob