Another yield curve question with USAM7 and TYAM7



Looking at the yield curve I have USAM7 at 2.494% and the TYAM7 at 2.926%. What do these percents mean exactly? Would it show that the ten year is over priced than the 30 year? Please give me details so I can understand better. Thank you

Comments

  • Hi,
    These are Yield figures for each of the futures products. They DO NOT account for the cheapest to deliver bond, therefore most would say yield for those two futures contracts are not accurate. They Yield curve function would be more accurate when using CASH symbols which will reflect an accurate Yield rate. Examples of one source for CASH symbols would be BUS02 (2 year) BUS05 (5 year) BUS10 (10 year) and so on.

    Yield is different than price. There is more information on Bond Yields here for example: http://www.investopedia.com/terms/b/bond-yield.asp

    Regarding the Yield Curve within CQG here:
    http://help.cqg.com/cqgic/17/#!Documents/forwardandyieldcurves.htm

    Best,
    Kevin
Sign In or Register to comment.