Markets to Trade - Bonds

• Gilts (UK)
• US Bonds - T-Bonds, 5 year Note and 10 year Note (US)
• Euro Bonds - The Bund, Bobl and Schatz (European)
• JGB - Japanese Govt. Bond

Points to consider

• No daily cash bets are offered on the bond contracts, only the quarterly bets
• All non US bonds are priced in decimals
• US T-Bonds and T-Notes are priced in 32nds and 64ths respectively but the spread betters will quote them as decimals, so a 5 year Note that is trading at 110 49/64 is quoted at 110.245

Stockmarket/Trading Providers
Spread Betting brokers CMC Markets TD Waterhouse Spread Betting E*TRADE Spread Betting	Online Brokers E*Trade Hargreaves Lansdown Stockbrokers TD Waterhouse	CFD brokers Saxo Bank Online Trading TD Waterhouse CFDs City Index

Interest Rate Spread Bets

The spread betting firms don't offer an individual market on interest rates but they quote the short term money market contracts, including -

• Short Sterling (UK interest rates)
• Euro Dollar (US rates - although called Euro Dollar it has nothing to do with Europe or the Euro)
• Euribor (European interest rates)

These contracts are simple to understand. If the Short Sterling mid price is 98.78 that equates to an interest rate of 1.22% (100.00 - 98.78). Buy these contracts if you think rates will fall and sell short if you believe rates are going to climb.

Points to consider

• Interest rate contracts move slowly, a large daily move is 15+ points
• There are no daily cash bets offered, only quarterly bets
• Many months are offered to trade, for example say it is Jan 2009 there will be Mar, Jun, Sep and Dec contracts for both 2009 and 2010
• Traders who use these markets normally hold positions for many weeks if not months

See also

• FAQ section - A Spread bet strategy for UK interest rates
• FAQ section - If trading in foreign markets are profits/losses in Sterling