Glossary entry (derived from question below)
English term or phrase:
**2s/10s flattener**
English answer:
strategy geared towards a reduction in the 2y/10y yield differential
Added to glossary by
Laura Vinti
Apr 27, 2004 15:58
20 yrs ago
2 viewers *
English term
United States
Top Quality Financial Translations
Native in: Italian 
Works in: German to Italian, English to Italian
**2s/10s flattener**
English
Bus/Financial
Finance (general)
bond market
If the Fed moves aggressively, the market’s risk premium could move just as sharply.
This would have an important impact on banks and their willingness to hold securities, which could have spillover effects in the bond markets.
We suggested a **2s/10s flattener** in our latest Alpha Strategies
This would have an important impact on banks and their willingness to hold securities, which could have spillover effects in the bond markets.
We suggested a **2s/10s flattener** in our latest Alpha Strategies
Responses
+2
13 mins
Ralf Lemster
Germany
Germany
Specializes in field
Germany
The language of financial markets
Native in: German
Works in: English to German, German, German to English, and 1 more.
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143
Selected
strategy geared towards a reduction in the 2y/10y yield differential
A "flattener" is a trade designed to benefit from a flattening of the yield curve, i.e. a reduction in the difference between short-term and long-term yields (see the recent discussion of a "steepener", which is the opposite strategy). The easiest way to implement this - assuming that this refers to US Treasuries - is to sell 2-year T-Note Futures and buy 10-year T-Note Futures.
4 KudoZ points awarded for this answer.
Comment: "Thanks a billion Ralf!"
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