Who trades 30 yr T-Bonds?

Discussion in 'Financial Futures' started by Bullz n Bearz, Jul 29, 2007.

  1. Post here and tell me about your experience with them. How long have you been trading them for? I am currently learning about how the 30 yr and Dow correlate with eachother and also I'm studying the 30 yr's market movements..

    Thoughts on this investment vehicle?
  2. Sometimes they correlate, sometimes they don't. Don't get too obsessed over the two of them having to behave in a certain way. If you want a slower moving vehicle, bonds and notes are a good way to go, especially if you don't have the stomach to trade stocks on days like last Friday.
  3. I've been watching the CBOT bond/note futures for some time now, and have recently started playing with one contract. Looking at trading ZB/ZN/ZF/ZT spreads once I have some more experience down the line. Some observations I made are:

    1. Huge liquidity. Thousands of contracts sitting on the bid/offer one tick apart during the regular session. This makes me more inclined to buy and sell at market (using limit orders) versus sitting on the book with an order until the market trades away from me.

    2. Less volatility (as measured by average daily range) versus ES, YM, ER2 and NQ.

    3. The tendency for prices to exhibit strong rangebound action during times where there is little direction in the market as opposed to the tendency of nice trendy movements when the market has conviction.

    Just my 2 cents...
  4. GoodGame


    I've read quite a few times that bonds are prone to big volatility on report days.

    Anybody know what are the reporting days and times?

  5. Surdo


  6. GoodGame


  7. nazzdack is absolutely right,technically DOW goes up,30 yrs should come off and vice-versa but sometimes they go together - I've gone heavily short of T-Bonds before predicting the DOW ramping,it did and the bonds ramped as well,luckily I bought mini-Dow too but my point is that each market is it's own market.

    I've traded T-Bonds for 11 years both in the pit and now on screen,it has good liquidity,does good volume and I know a lot of people who have and still do very well in there.
  8. Great -- you are a born -tbond trader! :)

    Let's talk more about how this contract changed over the years now that over the 90% of volume is on the screen.

    Do you still think that some techniques used on the the pit is useful on screen?
  9. Not sure what you mean by the first bit,I was only answering the original questions i.e. how long have you traded them for and what are your experiences/thoughts.

    Any techniques used in the pit are now pretty much useless,some people probably still trade purely off gut-instinct like in the pit but when you don't know who's doing what it put a lot of traders out of business.