CTD Bond Futures Question
I understand the concept of CTD that includes the conversion factor, invoice price, choosing bonds in the delivery basket and etc... but why does the futures contract track the price of CTD treasury bonds? I understand this is relatively important to gain insights on relative value, so any explanation would help? Thanks.
I'm in NYC and I met a bond trader from the street at a bar and he told me he trade less liquid off the run bonds and non-CTD bonds? Why would he trade such instrument? I didn't have a chance to ask him so any insights would appreciative.