Chicago trader: Profit from lower bond yields

Traders signal offers in the Standard & Poor's 500 stock index options pit at the Chicago Board Options Exchange (CBOE) following the Federal Open Market Committee meeting in Chicago, Illinois.
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Traders signal offers in the Standard & Poor's 500 stock index options pit at the Chicago Board Options Exchange (CBOE) following the Federal Open Market Committee meeting in Chicago, Illinois.

Back in the day, seasoned bond traders in the Chicago pits would often say that if you can trade bonds, you can trade anything. This is true now more than ever as it has proven immensely challenging to trade a Fed-influenced Treasury market.

We have the 10-year note dipping under 2 percent today and we want to stick with the theme "Lower for longer."

A key level for folks to watch is the 1.86 percent mark in the 10-year yield, the low print during the chaos of October 15th. That day marked the highest volume at the CME for 2014.