How to wind down a short-ed 10 year treasury futures

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sharukh
Posts: 571
Joined: Mon Jun 20, 2016 10:19 am

How to wind down a short-ed 10 year treasury futures

Post by sharukh »

Hi,

Say someone short-ed a 10 year treasury, to lock-in the low interest for 10 years. How does one wind it down slowly.

i.e. after a year how to make it equivalent to 9 year treasury future and another year later equivalent to 8 year treasury and so on..


P.S. Wish I had shorted a 10 year treasury when interest rates were low. May be I will do that when a opportunity arrives next time. This is a theoretical exercise for now.
Topic Author
sharukh
Posts: 571
Joined: Mon Jun 20, 2016 10:19 am

Re: How to wind down a short-ed 10 year treasury futures

Post by sharukh »

I got it.

Move from ultra 10 year, to 10 year , to 5 year and 2 year.
mamster
Posts: 724
Joined: Tue Jan 11, 2011 12:05 pm

Re: How to wind down a short-ed 10 year treasury futures

Post by mamster »

Shorting Treasuries seems like a great move if you have a crystal ball or the sports almanac from Back to the Future II.

I wish I'd done a lot of things in the past using information I couldn't possibly have had at the time!
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