Rates

Futures Trading: Rates

In the past couple of decades the rates sector was by far the most profitable for trend following trading and in particular the long side. This is of course because we have gone through a long term global phase of decreasing interest rates and thereby a slow but profitable rise in bond prices.

Rates in the developed world are now closing in on the zero line and be careful making the assumption that long bonds will continue to be the main source of income going forward. Take the long bond signals still but resist the temptation to overweight your strategy to this sector.