Treasury bond yield

Rising is equivalent to. It can be understood that under the premise of a certain future cash flow (national debt)

coupon rate

And the future cash flow has been determined), the price of government bonds falls, then the yield will inevitably rise. Explain by formula: current price = sum of cash flows/rate of return.

Therefore, it is necessary to worry about the decline in the price of government bonds.

underrate

about

treasury bond futures

carry out

hedging

Yes, this is a short hedge.

If this plan

Purchase of national debt

Spots, then it should be

Long hedging

, that is, buying treasury bonds futures. In addition, it can be understood that the increase in yield means the decline in the price of government bonds, which is a favorable price change and does not require futures operation. But at this time, shorting treasury bonds futures can make money, but it is no longer the concept of hedging.