Futures Measures

Bond Pricing: What is Cost of Carry?

Futures Measures

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

In today’s episode, our very own Tom Preston (TP) joins Pete to discuss bond pricing, and the cost of carry.

They start off explaining the traditional 30-year bond futures, and what actually constitutes the deliverable underlying bonds. They explain that technically this contract represents a basket of futures that can mature 5 to 25 years from the delivery date.

The guys go on to look at 2 year U.S. Treasury note futures and what constitutes a possible delivery basket for those futures. Lastly they take a look at the current roll from March to June and what the current spread is doing.

Futures Measures More installments

See All »

Latest tastytrade Videos As of May 27

Most Shared From the last 30 days