I am having excellent success trading the 10-year treasuries today. What's not to love? These movements are as smooth as sine waves, and since the margin requirements are among the smallest of all futures, I can make just as much money by trading more contracts. Treasuries are also among the most liquid of all futures. I could (but didn't) trade 500 contracts without affecting the market at all. Liquidity is as close to infinite as I could ever hope for. Liquidity was wanting last Thursday, and the treasuries showed some unusually erratic behaviors -- for treasuries. Today, however, market behavior is back to normal and the treasuries are providing bountiful profits.One reason why treasuries tend to move in such smooth waves is that this is perhaps the most liquid futures market in the world. You can't turn an aircraft carrier as fast as you can turn a dinghy, so the treasury futures tend to change direction much more gradually -- like a sine wave -- rather than in erratic, jerky paroxysms of irrational spams.
