Trading the TED Spread Question?

FITRADER · September 20th, 2007, 2:05 am

Since Treasury bill futures are not trading any more. Any thoughts on trading the TED spread(Treasurys vs. Eurdollar Fut) using Euros and?. Option 1:Could use a "bundle" of Euros vs. Two year note FuturesOption 2: Could use cash 3 month treas vs. Front month Euros. Problem would be borrowing costs on shorting the cash 3 month t-bill and basis risk between cash and futures.Any thoughts would be appreciated

biofa · September 20th, 2007, 8:48 am

Watch FED fund futures and Eurodollar futures..

FITRADER · September 21st, 2007, 3:02 am

Thanks..Will run correlation between FF futures and 3 month Tbill.