Bond and Stock market

Discussion in 'Trading' started by ramuk, Jan 7, 2003.

  1. ramuk


    What do the traders here watch to see the correlation between
    hte stock and the bond market ?

    Assuming SPX as the proxy for the stock market, should one
    be using TYX, TNX or perhaps something else ?

    Also, I see that the T-notes etc are traded in the futures
    market on a par basis, 100 etc. How does one understand
    this by just looking at the price action of TYX ? For eg. there
    is almost a 1 to 1 correlation between the SPOT and futures
    for the SPX. I assume some such correlation exists between
    the TYX and the bond futures.

    I don't neccessarily need a detailed answer. A pointer to
    some books, online sources will suffice. Thank you.