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Assume newly issued 30-year-on-the-run bonds sell at higher yields (lower prices) than 29-year bonds with a nearly identical duration. A hedge fund that sells 29-year
Assume newly issued 30-year-on-the-run bonds sell at higher yields (lower prices) than 29-year bonds with a nearly identical duration. A hedge fund that sells 29-year bonds and buys 30-year bonds is taking a
conservative position.
bullish position.
bearish position.
market neutral position.
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