4 ms·
Yes, completely agree - moreover - if the trader is going long the futures, he's betting that interest rates will drop, therefore, isn't he betting that the US
by inthewoods 15y ago
Yes, completely agree - moreover - if the trader is going long the futures, he's betting that interest rates will drop, therefore, isn't he betting that the US WON'T lose it's Triple AAA rating (which should cause interest rates to rise)?
(Bearing in mind the other purposes which could exist for the trade - ala hedging, etc.)
- retube 15y agoYeah. I'm giving the author the (probably undeserved) benefit of the doubt and assuming the trade was a short. Although I don't think it's expressly stated. (Edit: actually it is, towards the end of the article)