Trader's Edge: Trading the US Treasury Yield Curve

The U.S. Treasury Bond market is the largest and deepest government debt market in the world. Individual U.S. Treasury Notes and Bonds provide important benchmark yields at various points along the yield curve.
Trading the slope of the U.S. Treasury curve using futures contracts involves the execution of an inter-commodity spread. One very common and widely quoted yield curve spread is the twos versus tens yield spread. This spread compares and reflects the difference in yields between the current U.S. Treasury 10-Year note and the current U.S. Treasury 2-Year note.
Watch this video to learn more about this spreading technique.
Presenter: David Gibbs, Director Education CME Group
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CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.

[@yannickblondeau5810]

Thanks for this. If you have a hard time understanding, try setting the video speed at .75

[@JP-wq6sb]

well done video. thank you

[@P.Gillett]

5:10 so if I expect the curve to steepen (ie, 10 year interest rates increase, or 2 year rates drop) I should buy 3x 2-year futures, and sell 1x 10-year future, Got it.
Now, question is, how does this make me money? When the interest rates of the 10-year increase, do the prices decrease? Therefore I have sold short the 10-year bond? Thanks for your help.

[@chrism7275]

How come your website says something different about the ultra Bond says 25 years to 30 but on this video actually says it's a 20 year interest rate

[@kevin90amaya22]

Sp vs t not 10 year