"10Y breakeven shorts with 0.8 beta"

"10Y breakeven shorts with long 80% nominal to eliminate long duration bias"

Are the above two the same, what do they mean?

  • 2
    $\begingroup$ "breakeven long": you are long TIPS and short nominal Treasuries, you profit if the breakeven inflation rate increases (hence the name). "breakeven short": you are short TIPS and long nominal treasuries. 0.8 or 80% refers to how much of the nominal bonds you have for each TIPS. $\endgroup$
    – Alex C
    Dec 19, 2019 at 2:25
  • $\begingroup$ Awesome! Thank you Alex for the explanation. $\endgroup$ Dec 20, 2019 at 3:31


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