Note Over Bond (NOB) Spread

A yield curve spread created by selling the 10-year United States Treasury note futures contract and buying the 30-year bond contract on the Chicago Board of Trade (CBOT). Alternately, an equivalent position can be created in the cash/repo market. An investor expecting inversion of a flat yield curve would buy the bond contract and sell the note contract in an appropriate ratio. An investor expecting a steepening yield curve would purchase the note contract and sell the bond contract in some proportion.

Glossary * N