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Note Against Bond Spread - NOB
What does it mean?
A spread within futures contracts created by offsetting positions in 30-year treasury bond futures with positions in 10-year treasury note contracts.
In Other Words...
Also known as the note over bond spread, the position a futures trader will take depends upon their perception of the yield curve. If a flat yield curve is expected, the investor will take a long position in the bond and a short in the note contract. If the yield curve is steep, the investor will short the bond and take a long position in the note contract.
Related Links
Bond Basics Tutorial - What are bonds and do they belong in your portfolio? Get all the answers in this comprehensive tutorial.
Related Terms
Bond | Cash Commodity | Cheapest to Deliver | FAB Spread | FAN Spread | Futures Contract | Long | Note | Short | Treasury Bond | Treasury Note | Yield Curve
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