Yield Inversion (10y - 2y)

JohnL
2022-09-29

Been holding a futures pair trade (short $Micro 2-Year Yield - main 2209(2YYmain)$,long $Micro 10-Year Yield - main 2209(10Ymain)$). The rationale was 10 year yield should always be higher under Normal circumstances. In statistics world, revert to mean is expected in the long run. 

The yield Inversion have been up and down same like all other asset classes. The trade has yet to work out to my favour. But it is definitely good personal experience learning about futures product. Next I will look into $Micro WTI Crude Oil - main 2211(MCLmain)$

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