Looking for Treasury/Bond traders

Discussion in 'Trading' started by ilyagood, Apr 6, 2009.

  1. ilyagood


    Hi Guys,

    Are there any traders that trade real Treasury securities/Bond/Notes not futures? I’ve got few questions about coupon payment dates.

    p.s. sorry for my English.
  2. Whatcha need?
  3. ilyagood


    I wonder what happens to treasury notes/bond’s price few day before coupon payment… these days are known and fixed for every series… why don’t just buy it few day before coupon payment then sell after payment? and during the time you held it you can protect yourself from price fluctuation by hedging CBOT futures…

    p.s. and again sorry for English :)
  4. MTE


    The total price you pay/receive always includes accrued interest so if you buy a bond just before the coupon payment then you will pay the seller the proportional amount of that coupon, which in case of a day or two before it means practically the whole coupon.

    Sorry, no free lunch here.
  5. Yep, as the previous poster mentioned, you should read about bond accrual and the pull to par effect...
  6. ilyagood


    Yehh I’ve just found this information on CME website -)) Anyway big thanks for answers!