The idea is a position that profits from any difference between the 20yr bond ETF ( NASDAQ:TLT ) and NASDAQ:IEF , the 10yr Note ETF. The potential opportunity lies in their identical share price, a rare event.
Yield on the 20yr has never been lower than the yield on the 10yr (since 1989). The top chart shows the difference in price . Always above 0. It...
What happens if you take every possible US Treasury Yield spread and sum them all together?
You get the chart shown on top.
$SPX is shown on the bottom for comparison.
Vertical lines show where it has crossed below zero in the past.
It just crossed below zero again.