Adecade isn’t that long in the interest rate world, but it is often a critical time stamp in the life of a portfolio. Bond markets, especially in the 10-year note futures, offer tremendous liquidity and depth to traders looking for opportunities or a hedge against risk in a portfolio. In other words, getting into and out of positions can be done quickly and efficiently. The 10-year note futures may also be used in conjunction with other contracts in the yield curve, such as 2-year, 5-year or 30-year interest rate futures. Other correlations, or even negative relationships to other markets such as stock index futures, or even gold futures may appear. Ultimately, 10-year note futures can be a versatile tool to hedge risk, spread against other interest rates or other asset classes in a portfolio.
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