Negative Yield "Top" For Bond Futures?
Posted: Fri Aug 10, 2012 2:26 pm
Hi,
I'm trading Bond Futures using trend following and I'm trying to figure if there is a futures contract price that implies a negative yield for the underlying bond.
This is obviously a "soft" top since bonds can (and recently we've seen it in German Bonds) trade at negative yields but I still figure it adversely affects the probability of further upside.
Does anybody know if this price exists or if the characteristics of the underlying bond need to be known?
Thanks,
Cordura
I'm trading Bond Futures using trend following and I'm trying to figure if there is a futures contract price that implies a negative yield for the underlying bond.
This is obviously a "soft" top since bonds can (and recently we've seen it in German Bonds) trade at negative yields but I still figure it adversely affects the probability of further upside.
Does anybody know if this price exists or if the characteristics of the underlying bond need to be known?
Thanks,
Cordura