Ques about 5yr & 10yr Note movements

Discussion in 'Financial Futures' started by makd1234, Jul 14, 2010.

  1. makd1234


    I'm a bit puzzled at the movement of these two contracts. Sometimes they have a direct inverse relationship to the YM/ES and at other times they seem to go in their own direction or on the other hand barely move at all when there's big movement in the main indexes.
    Sometimes they go through the above dance several times during the trading day. Yes, I know the obvious reason for divergance is Treasury Note related news affecting the value of the notes. Though I can't imagine there is that much news floating around to cause that many weird movements many times in the day.

    Anybody has clues/articles/books on these?

    Thanks in advance.
  2. Try "Understanding the Yield Curve" series by Antti Ilmanen and "Fixed Income Securities" by Tuckman.

    There's all sorts of things that can affect these things...