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Shifted more options profits into 250 NOK shares
What’s does “fill the gap” mean??
$DPZ 370c 3/27
Good entry point for PLTR?
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It would be substantial but will vary depending on how long it takes for rates to drop (earlier changes will be more substantial than later). You can calculate the expected impact using the duration of the bond https://www.investopedia.com/terms/d/duration.asp
Thanks!
What if it was within the next 2-3 years?
The further away from maturity, the more the price would change in response to interest rate changes.
Mentor
A 30 year Treasury at 2% would be roughly 40% higher in value. If it takes 4 years, then less, of course.
The trade isn’t just will interest rates go down to 2%? Long term rates are generally a reflection of expectations on real GDP growth - so inflation expectations are in the mix as well. Fed policy plays a secondary role here. The other factor is the credit worthiness of the US Treasury - or at least the supply demand balance for UST debt.
So my read is moderate real growth, sticky inflation, and continued Treasury issuance don’t portend to falling rates in the next year or two.