ES Futures Term Structure

Discussion in 'Index Futures' started by blange, Mar 26, 2009.

  1. blange


    I've noticed that the term structure of ES futures has been backwardated for a while now and that the front month consistently trades at a discount to par. Usually the futures trade in a slight contango above par (although the "cost of carry" has been dramatically reduced by the interest rate being practically 0%). How bearish is a backwardated term structure? If traders in aggregate believed the market has made a solid bottom, wouldn't the term structure be in contango?
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