The /10Y futures represents the current 10-year treasury yield. From what I understand about bonds, if the current yield is rising, it means newer bonds are worth more than older bonds. i.e. the returns on newly issued bonds are greater than older issued bonds. The inverse should also be true.
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The /10Y futures represents the current 10-year treasury yield. From what I understand about bonds, if the current yield is rising, it means newer bonds are worth more than older bonds. i.e. the return on newly issued bonds are greater than older issued bonds. The inverse should also be true.
ETFs like BND contain a mix of different types of bonds, but should be mostly older issued bonds. So what we should see is an inverse correlation of the /10Y future with the BND price. This indeed looks true based on a graph of BND with /10Y: