when I go through department of treasure, study yield curve and historical data, I reazlied rate is ridiculously low. 2yrs note once was normally around 3.5% to 5.8%. but now it is just around 0.37%. anyone has idea about what 2yrs note's price would be if rate jumps to 1.2% (I believe recently it should go there)? the yield curve is sharlpy up. it will be corrected. I shorted ZT, ZF,ZN, ZB. each with 1 car.
Sometimes history does not repeat itself , at least for a long period. One day Fed woke up and invented the QE.. and this changed everything...then QE2..then.. POMO.etc And they continue to manage the inflation (at least the official data).