Hi All,
Hope you enjoyed today's impressive markets!
Could you kindly share how I should start following markets via Bloomberg,etc, if I want to finally work on Interest Derivatives Trading Desk?
What are the main assets, market sectors do those traders track to make trading decisions?
Based on my understanding, US Treasury, Euro Dollar Future, LIBOR, of course. Anything else are MUSTs for IRD traders?
Thank you so much!! Highly appreciate your helps as always.
- BChen
1) the us treasury curve (cash + futures) yield change on day ZT 2yr 3yr ZF 5yr 7yr TY 10yr ZB UB 30yr
2) the swap curve (the 1st 4 years you can bootstrap from the first 20 eurodollar contracts) the front end (the 1st 1-2 years of the curve) separately the rest of the curve...and the big forwards (1yr/1yr, 5yr/5yr, 10yr/20yr, ect...)
so you can watch how the treasury/LIBOR spreads move over time (5yr, 10yr, 30yr ASW are the bigs)
3) what is priced in to each Fed meeting for the next 1-2 years (bps of hike priced into each meeting, and how that changes over time)...using FedFunds, Eurodollars and OIS (built an excel sheet to calculate this)
4) yield curves and butterflies (essentially, everything vs everything...so you create a matrix the big flys that large institutions watch/trade are: 2-3-5 2-5-10 3-5-7 5-7-10 5-10-30 10-ZB-30
the main yield curves are 2/5 5/10 5/30 10/30 but you should have a list of everything vs everything (and how they change over time) to see where opportunities are
and then of course, the non-interest rate things that often move with rates /ES, /CL, USD/JPY
most firms have their own internally built market monitors that the traders use, and they are usually free for anybody internally to use...you just need to ask. you want to see price - yield - yield change on day for the outright instruments
then for spreads, you want level - change on day
if your firm does not have this (and i'd be shocked if that's true), then you should build it in excel.
also, bloomberg launchpad has market monitors that you can setup/customize to do most of this. its usually better to do it in excel so you can customize the view with your firms internal data, but bbg launchpad is better than nothing
Really really appreciate it!!
Your reply is priceless to me. Thank you so much!!
May i know what is /ES, /CL? those non-IR things moving with rates?
ES is the E-mini, CL is the crude oil future
Thank you!
Hey, just wanna say I appreciate this write-up. Looking to go into rates during ft.
Bloomberg has a bunch of handy monitors, e.g. WB, WBF, WEIF, GLCO, WCR, BTMM, FED etc etc etc
Got it! I ll check it out and let you know, thanks a million.
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