Our trader just bought some CNZ7s and sold some CNH8s.
CNZ7 - dec 17 10 year gov bond
CNH7 - mar 18 10 year gov bond
Could someone help to explain the trade in terms of:
1. what is the bet?
2. what are the risks?
If there are any papers I should read, please help to point me in the right direction.
Thanks a lot,
KFC