Bogleheads.org

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.

I got it.

Move from ultra 10 year, to 10 year , to 5 year and 2 year.

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!