The idea is a position that profits from any difference between the 20yr bond ETF (
TLT) and IEF, the 10yr Note ETF. The potential opportunity lies in their identical share price, a rare event.
Yield on the 20yr has never been lower than the yield on the 10yr (since 1989). The top chart shows the difference in price . Always above 0. It implies that TLT's share price has always been higher than IEF's (middle chart, excluding 6mo in 2011). Bottom chart is TLT-IEF. Almost always >= zero.
This week the price difference was ~zero. A position that profits from any gap between TLT and IEF is a high probability trade.
Actionable trade details will depend on the assets used and may include:
TLT) and IEF, the 10yr Note ETF. The potential opportunity lies in their identical share price, a rare event.Yield on the 20yr has never been lower than the yield on the 10yr (since 1989). The top chart shows the difference in price . Always above 0. It implies that TLT's share price has always been higher than IEF's (middle chart, excluding 6mo in 2011). Bottom chart is TLT-IEF. Almost always >= zero.
This week the price difference was ~zero. A position that profits from any gap between TLT and IEF is a high probability trade.
Actionable trade details will depend on the assets used and may include:
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.