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Chuck:
I don't think most day traders will see much of a difference
once the 6 percent contract is the front month contract. By
lowering the target yield to six percent, the CBOT will have
a product that will be more flexible for the portfolio
hedgers that use this product, because a 32nd will now cover
a smaller portion of the change in yield: In essence, the
new bond contract will give them the ability to fine tune
their hedging activities.
Best,
Tim Morge
CRLeBeau@xxxxxxx wrote:
>
> The CBT says that the 6% bonds should trade just like the 8% bonds only 20
> big points lower. That seems a bit simplistic but I hope it is that simple.
> Do any of our Bond traders on the list have any comments?
>
> Chuck
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