Five Against Note Spread (FAN)
A spread in the futures markets created by taking offsetting positions in futures contracts for five-year treasury notes and ten-year treasury bonds. Investopedia Says:
A FAN spread is created by either buying a futures contract for five-year treasury notes and selling a futures contract for ten-year treasury bonds or vice versa. Investors speculating on interest rate fluctuations will enter into this type of spread in hopes of under or overpriced treasuries. Related Terms:
Cash Commodity
Cheapest to Deliver
FAB Spread
Futures Contract
Spread
Treasury Bond
Treasury Note
Yield Curve |