Note Against Bond Spread - NOB

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DEFINITION of 'Note Against Bond Spread - NOB'

A spread within futures contracts created by offsetting positions in 30-year treasury bond futures with positions in 10-year treasury note contracts.

INVESTOPEDIA EXPLAINS 'Note Against Bond Spread - NOB'

Also known as the note over bond spread, the position a futures trader will take depends upon their perception of the yield curve. If a flat yield curve is expected, the investor will take a long position in the bond and a short in the note contract. If the yield curve is steep, the investor will short the bond and take a long position in the note contract.

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