With Dec. 10’s currently printing 12508 the benchmark 10yr. yield is 2.80%. Now keeping in mind that the Dec. 10yr. futures is currently tracking the cheapest to deliver cash instrument that matures in 2017 there is some spread risk associated with the following level. Not withstanding this comment and the full disclaimer:
The information in these pages is for informational purposes only. The sources for the information including the exchanges themselves are deemed reliable by the writer. However the writer makes no representations or warranties as to the accuracy of the information in these reports. Commodity trading is very risky and before considering trading commodities you should consult with a bona fide financial professional. The CFTC nor the NFA nor the exchanges make any warranties as to these writings.
Please take note of the chart below. A level of 2.5% would roughly equate with a Dec. 10yr. futures price of approx. 12714.5 currently. I believe those levels are worth playing for. However you may want to use the Mar futures as your guide. Jan., Feb. and March options are exercisable into March futures. The level that equates with 2.50% in Mar. would be approx. 12614.
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