It is March and Cavalier Financial Services Corporation is concerned about what an increase in interest rates will do to the value of its bond portfolio. The portfolio currently has a market value of $351.1 million, and Cavaliers management intends to liquidate $1.1 million in bonds in June to fund additional corporate loans. If interest rates increase to 6 percent, the bond will sell for $0.98 million with a loss of $120,000. Cavaliers management sells 10 June Treasury bond contracts at 109-025 in March. Interest rates do increase, and in June Cavaliers management offsets its position by buying ten June Treasury bond contracts at 100-020. What is the basis at the initiation of the hedge?