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Treasury bond futures to implement market views. The market views and the tasks are as follows: 1. The Fed is expected to lower rates
Treasury bond futures to implement market views. The market views and the tasks are as follows: 1. The Fed is expected to lower rates this year. You want to implement a long duration trade. a. Choose the US Treasury note/bond assigned to your group to implement the trade, under Task#1. You will risk $8,000 DV01. Calculate the par amount to trade. b. Choose the note/bond futures contract assigned to your group to implement the trade, under Task#1. You want to risk $8,000 DV01. Calculate how many bond contracts to trade.
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