Shorting Treasury Bonds

Discussion in 'Fixed Income' started by kmiklas, Jul 17, 2023.

  1. kmiklas

    kmiklas

    Has anyone here ever sourced and shorted a Treasury issue?

    For example: borrow a T-bond, sell it, rates increase, bond value decreases, cover for profit.

    Thanks, Keith
     
  2. ZBZB

    ZBZB

    That what the futures are for or TLT.
     
  3. mervyn

    mervyn

    have you heard about zt zn zb?
     
    kmiklas likes this.
  4. 2rosy

    2rosy

    what happens at maturity when buyer gets back par? why short the bond, can't you just be the borrower? easier to use interest rate swaps, stir, futures, CDS, or total return swaps
     
    kmiklas likes this.
  5. mervyn

    mervyn

    retail doesn't get those fancy stuff, stick to the basics, long or short bond futures.

    i posted in another thread, shorted zn from aug 2021 at 134 range and closed at 120, that is 14k profit per contract, i had 5 contracts at one point. what a year.
     
    piezoe, longandshort and kmiklas like this.
  6. Sergio123

    Sergio123

    I use TBT and /10Y. The yield curve needs to correct eventually.

    I am waiting about 14-15 months. There is a certain embarrassment. A Buffoon that needs to be GTFO'd.
     
    kmiklas likes this.
  7. Let’s get a global macro group going. I need to learn the retail rates products (as I recently had to convert some stuff to pa & lost sales coverage).
     
  8. mervyn

    mervyn

    Long 3 contracts September ZT, 101’14, seems bottom is near or close to.

    Don’t expect fast drop in rates like it came up. But small ticks can’t make lunch money fast.

    TLT also broke 100, I’d buy if I am into ETFs.
     
    Last edited: Jul 27, 2023
  9. Sergio123

    Sergio123

    What was yesterday afternoons yield and VIX spike + market drop about?

    Japan?

    I am operating on the thesis that yield curve is going to correct. There will be de-dollarization and the fed isn't going to cut rates anytime soon.
     
  10. mervyn

    mervyn

    in the green $500, want to hold for few days to see if a pure news cycle can can move the yield down a little, then exit.
     
    #10     Jul 28, 2023