30 Year Bond spread change this Sunday..because of tick change: for the sake of this clarification forget fractions...lets only use decimals...okay, currently we view 30 year tBond prices as say 116.23 Bid 116.24 Ask 116.33 Bid 116.34 Ask...etc.etc.etc.etc.etc. ...will this Sundays new tick point reduction from $31 to $15 cause the bid/ask spread to change to something different?..please help understand...will it be something like: 116.2350 Bid 116.2400 Ask etc.?thanks for clarifying!
the 30 year bond and 5 year note tick size will reduce by half current size. Divide by 2. It means your commissions will double if you maintain same position sizes.
By the way keep an eye on the spread between 30 year rates and 10 year rates - its widening - why - its deliberately manipulated to keep the banks happy or rather prevent them from collapsing - they borrow short term at low rates and lend out long term at higher rates - some day that foolishness will end.