Note Against Bond Spread - NOB


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.

BREAKING DOWN '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.

  1. Bond

    A debt investment in which an investor loans money to an entity ...
  2. Short (or Short Position)

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  3. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, ...
  5. Cash Commodity

    In futures trading, the cash commodity is delivered for payments. ...
  6. Treasury Note

    A marketable U.S. government debt security with a fixed interest ...
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