Getting Long on Long Duration..US 10-year note futures look primed for significant upside in the coming quarters as rates peak and the global economy rolls over. Weakening China economy already a sign of coming deflation while the lagged effects of rapid rate hikes in the US economy haven't even kicked in yet.
Have a look at the usual signs of a topping business cycle. Highs in homebuilders and consumer discretionary stocks + massive inverted yield curve. You have 110 support on the 10-year going back quite a ways and the last time the COT was this out of whack, it marked a major low in bonds. 5% on 90-day bills (Money Funds) has also traditionally marked a peak in short-term rates.
So $2k of downside vs. $30k+ upside. Excellent, just excellent R/R on this trade. Scaling into longs...
Zn1!long
Zb1In the context of futures markets, "ZB" typically refers to the ticker symbol for the 30-Year U.S. Treasury Bond futures contract traded on the Chicago Board of Trade (CBOT). The contract is based on a notional, or face, value of $100,000, and it is settled in cash. The contract is used by traders and investors to speculate on and hedge against changes in the value of long-term U.S. Treasury bonds, which are issued by the U.S. Department of the Treasury and are backed by the full faith and credit of the U.S. government.
Futures contracts are financial instruments that allow traders and investors to buy or sell an asset at a predetermined price on a specific date in the future. They are traded on organized exchanges, such as the CBOT, and are subject to standard terms and conditions that are set by the exchange. The value of a futures contract is determined by the underlying asset, which in this case is the 30-Year U.S. Treasury Bond. The price of the futures contract is influenced by a variety of factors, including changes in interest rates, economic conditions, and market demand for the bond.