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<DIV><FONT face=Arial size=2>While we all know that, since the Notes became the
bench mark, the volume of the Bonds has fallen and the volume on the Notes has
increased, but what does all this mean for the average small
trader? What do list members think the future holds for the
short, middle and distant terms?</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>From my standpoint, as a day trader of the T-Bonds,
I have not noticed any difference in the bid/ask spread, getting filled, range,
volatility or anything else (outside DBC satellite feed producing less and less
ticks, which I assume is them and not the instrument!). What I do know is
that the comparison between the two shows only too clearly to me that I still
want to trade the bonds and not the notes. In simple terms I would have to
spend and risk twice the amount on the notes to achieve virtually the same on
the bonds. However, I have never traded the notes and do not know what the
spread or slippage is like. Can anyone confirm what they are?</FONT></DIV>
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<DIV><FONT face=Arial size=2>The fact that some of the big players are not
finding the bonds much to their liking matters not to me, so long as the spread,
slippage and getting filled on my small numbers is still
excellent. Also, of course, the bonds still (and I hope will go on
doing so!) display that very readable quality, which is naturally the vital key,
so far as I am concerned. </FONT></DIV>
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<DIV><FONT face=Arial size=2>However, one does have to keep an eye on the future
and with the benchmark changing to 10 yrs rather than 30 yrs, it is possible
that the character of the bonds could change. They may well
have changed already with the big traders, but I have not noticed anything from
my stand point.</FONT></DIV>
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<DIV><FONT face=Arial size=2>I would be interested to learn of other peoples
views on the two instruments and particularly on the trading of the
notes...</FONT></DIV>
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<DIV><FONT face=Arial size=2>Bill Eykyn<BR><A
href="http://www.t-bondtrader.com";>www.t-bondtrader.com</A><BR>"Learn to read
the tape"</FONT></DIV>
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