There has been good activity today selling 30yr. futures vs. buying the Ultra long bond ULH as shown below.
MERRILL SELLS
-370 118-26 USH
+250 123-26 ULH
SMITH BARNEY SELLS
-300 118-26 USH
+200 123-26 ULH
MORGAN BANK SELLS
-300 118-20 USH
+201 123-17 ULH
MERRILL LYNCH SELLS 1.48 RATIO
-370 118-21 USH
+250 123-19 ULH
GOLDMAN SELLS
1.43 RATIO
-400 118-24 USH
+280 123-23 ULH
Ultra longs require deliverable grades that have at least 25 years left of maturity, vs the 30yr. futures which require the deliverable grade to have at least 15 years of maturity remaining.
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