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30 YR T-Bond Hedger

A hedger in the 30 YR T-Bond market is an individual who uses the futures market to offset price risk when intending to sell or buy the actual 30 YR T-Bond. Hedging is possible because the 30 YR T-Bond cash prices and 30 YR T-Bond futures prices tend to move in the same direction. However, the difference between the cash price and the futures price may narrow or widen. The change in the difference between the cash price and the futures price is called basis risk. Because of the changing basis no hedge can be perfect.


Where can you hedge the 30 YR T-Bond? The 30 YR T-Bond can be hedged on the Chicago Board of Trade (CBOT). The CBOT offers a competitive and transparent market place to engage in efficient hedging strategies. If you are interested in hedging 30 YR T-Bond please contact us. One of our experienced 30 YR T-Bond traders will be happy to give you a call to discuss hedging strategies with you.

Hedging a Fixed-Income Portfolio with Swap Futures

Click on the link above to download a very informative .pdf brochure entitled "Hedging a Fixed-Income Portfolio with Swap Futures.” It was published by the Chicago Board of Trade. This is a must read guide for any novice or advanced trader considering a hedge in the bond market using exchange traded 30 YR T-Bond futures and options.