Bond futures are benefiting from a risk-off mood in

Bond futures are benefiting from a risk-off mood in equity markets, as the S&P 500 saw a 1.2% intraday pullback. Safe-haven flows remain a dominant driver in fixed-income pricing. Christopher Savage, a conservative running for Spokane City Council against incumbent Councilman Zack Zappone, plans to vote against both the levy and bond. He worries the legal authorities of park rangers are too limited. First, there is the gross basis , defined as the cheapest-to-deliver bond’s spot clean price, minus the conversion factor times the futures price. (The clean price excludes accrued interest.) The gross basis is merely the sum of carry, delivery option value and any idiosyncratic mispricing in futures relative to fair value. The flattening of the futures yield curve indicates shorter maturity instruments are catching bids faster than long bonds. This may reflect uncertainty regarding long-term growth prospects.