How make money from this?

Discussion in 'Strategy Building' started by nzbryant, Mar 29, 2006.

  1. I noticed this chart for 3month T-Bills. How could one have taken advantage of this trend? Sorry if stupid question but Im not a bond guy. I assume the answer is not simple - because 3-month bills clearly expire.
     
  2. KS96

    KS96

    You sell short the 30yrs and with the money
    you buy t-bills and keep rolling them every 3 months.
    You must do it in a large scale, with low commissions
    and favorable margin requirements for the trade to be profitable.
     
  3. A lot of volatile exposure on the long dated bonds no?