Bond trading in US

[sasankm]

Hi I am Sasank, a newbee in Bond trading, can someone guide me where and how to start?

 

[Rhody Trader]

You need to give us a little more background for us to provide a useful answer to that question. What's your market experience? What timeframe? Why have you chosen the bond market? etc.

 

[traderkenny]

if you are just a beginner, you may need to get some lessons first. There are lot of website provides online training programs. here is an example: Bond Futures trading tips : Interest Rate Futures . This site provides everything you ever wanted to know about CBOT interest rate futures markets.Treasury bond futures contracts are an important part of learning how to trade futures and have their own interest rate fundamentals and are important to people who are interested in how interest rate hedging and government bond futures work.

good luck!

 

[forexsys3]

if you are just a beginner, you may need to get some lessons first. There are lot of website provides online training programs. here is an example: Bond Futures trading tips : Interest Rate Futures . This site provides everything you ever wanted to know about CBOT interest rate futures markets.Treasury bond futures contracts are an important part of learning how to trade futures and have their own interest rate fundamentals and are important to people who are interested in how interest rate hedging and government bond futures work.
good luck!

Thank you.

 

[shanebrannick]

Hi, I'm Shane.

I've been trading Bund Bobl Schatz for the last 2 years but have been considering looking at the US bond futures as well. Does the fact that the CTD bond changes so much affect trading from day to day. It hardly ever happens in the Bunds so I've never had to worry about it.

Any advice greatly appreciated.

 

[Rhody Trader]

Does the fact that the CTD bond changes so much affect trading from day to day.

How often do you think the CTD changes? In my experience, it's not that frequent and certainly has almost zero day-to-day impact.

 

[Martinghoul]

There's quite a bit of stuff happening in TY and US CTD these days, for example, but it shouldn't affect prices too much in a meaningful way, as RT said already.

 

[shanebrannick]

Thanks for your help lads. In answer to RT, I thought that the ctd changes a few times during the life of the futures and I was worried that it would affect the Basis Point Value of the futures and make the spreads behave differently. I was planning to trade spreads so I thought it was something I should be aware of.

 

[Martinghoul]

Thanks for your help lads. In answer to RT, I thought that the ctd changes a few times during the life of the futures and I was worried that it would affect the Basis Point Value of the futures and make the spreads behave differently. I was planning to trade spreads so I thought it was something I should be aware of.

What spread? The roll? If so, yes the CTD can affect various funky aspects of the pricing of the roll, so good luck...

 

[shanebrannick]

What spread? The roll? If so, yes the CTD can affect various funky aspects of the pricing of the roll, so good luck...

I meant spreads like the 2 year V 10 year, 2/5/10 Fly etc. And if the BPV changes in one contract (because of a change in CTD), then the correct ratios will change because the future will become more or less volatile.