FAB (five against bond) spread

Definition of "FAB (five against bond) spread"
  1. The process of simultaneously buying a five-year Treasury note futures contract and selling a long-term Treasury bond futures contract, or vice versa
How to use "FAB (five against bond) spread" in a sentence
  1. He made a profit through a FAB (five against bond) spread by purchasing five-year Treasury note futures and selling long-term Treasury bond futures.
  2. The FAB (five against bond) spread is a common strategy for mitigating risk in futures trading.
  3. The financial analyst advised using a FAB (five against bond) spread as part of a diversified investment strategy.

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