No, were not going to Disneyland, what you are looking at is the accutic method of looking at the yield curve spread. At the time of this alert 12:02 p.m.c.s.t. 10yr. note futures, upper left,clock were trading with a gain of 8/32nds on the day or $250.00 per contract. The 2yr. note upper right (which has a notional value of $200K per contract so the tics are worth twice as much as the 10yr. note, was trading down 1.5 tics on the day or $93.75 per contract. Earlier in the session as noted in the blue coloring in the illustration the 10yr. year notes were still out performing the 2's even though the Fed was in buying
2yr. notes in the cash market. As can be seen the buying did not really effect the curve all that much. currently 1:17 p.m.c.s.t. after the minutes of the FOMC have been released 10's are continuing to outperform. For more on the curve and other derivative price relationships go to www.accutic.net.
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