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Dear community

I see the brokers quote these Treasury swap spreads (basically treasury yield minus sofr swap rate)  per integer years tenor
what is the actual payoff of these trades ?
i believe these trades are also called SpreadOvers

say the 5y spread today is 20bp
and i enter into that 5y trade today.
and then in say 1 year's time i want to value the trade , how do i do it?
i know probably people will calc the Pnl in various approx ways based on swap dv01 * swap move - treasury dv01 * treasury move  , but i really want to know how these trades look in their term sheet / isda confirm

 

Hmm - I usually see them (say on Bloomberg) as swap minus Treasury, but I guess I never thought of these quotes as anything other than a slightly more dynamic way to quote swap rates. So if the 5Y OTR treasury moves by a bp, the swap quote is automatically adjusted by the same. But maybe I’m too far out of the loop.

Yes swap minus treasury i meant