A newbie question: as ZB and ZN have a similar value (120 X $1000 now), why using another ratio than 1:1 ?

Yes always 1/1, I dont put it on as normal spread, I will leg in each side, and can scale in and out durning the day......

J-Train

If you look at the average daily range of ZF, ZN, and ZB, you'll notice that ZB is roughly twice as big as ZN which is about 50% larger than ZF. The reason is that actual Treasury securities of varying maturities are deliverable against these contracts, and the amount of price change of a shorter term instrument to achieve a given yield change is smaller than that of a longer term instrument. Historically the ratio for the NOB (10 Year Notes over Bonds) spread has ranged from about 2:1 to 5:3, the latter being more common. The Fite (Five Years over Ten Years) has ranged from about 5:3 to 3:2.

If you are long the NOB 1:1, you are short the market. Although recently ZB has really done it's own thing relative to the rest of the curve.

didnt mean to be so long about getting back to you....I was trying to put on trade....will show you how I do it...
1/1....I am only playing the spread of 5yr, 10yr, 30yr...
this morning was directional long ZN this morning....and holding fell like more upside to this move....I just added short ZB untill put back is over.....most would say this type of trade is tuffer that playing the yeild....Im have a hard time posting trade and watching trade.......Thanks

I'll talk to you when you're free. Make money!

long 30yr short 10yr ....with 0 spread 5/32 stop

stoped out long 30yr, holding short 10yr

Back long 30 (nob in place)

To jstnbrg:

If you can help me trade the curve as a retail trader let me know.

bookum

Thanks Steve!

To @jstnbrg:

If you can help me trade the curve as a retail trader let me know. PM would be great

bookum