Ok so I got this idea, it's very simple so I know I'm not the only one who has thought about it. It is a pairs trade between long and short term treasury swaps, and goes as follows:
Going by current market rates:
USD Libor is 92bps
US 30 Year is 210 over libor
US 5 year is 102 over libor
Long 6 bonds of five year treasury swaps for every 1 short
(More dynamic alteration) Long 1/beta bonds of five year treasury swaps for every 1 short T Bond swap
6 x 102 - 210
612 - 210 = 402 bps profit
4.02% ROI ---> profitable
Earn the risk premium with less default risk.
basis risk exists resulting in some volatility, but still hedges exposure to treasuries, leverage till you reach your volatility target.
It should yield a profit, I don't know whether banks, pensions, or HFs are already doing this. Maybe there is something obvious i'm missing as to why it won't work.