When trading the US Treasury Basis, why is a conversion factor weighted number of futures to your bonds the convention over DV01 weighted number of futures? why does one prefer the conversion factor weighting?
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$\begingroup$ What did you want to trade cash vs futures for ? $\endgroup$– user68819Commented Sep 4 at 14:24
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It is the same thing because by definition the DV01 of the futures is = DV01-of-CTD / CF
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1$\begingroup$ You can trade basis which is not ctd fyi $\endgroup$ Commented Sep 3 at 11:06
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$\begingroup$ Good point. In that case definitely you should look at the DV01's. $\endgroup$– nbbo2Commented Sep 3 at 11:59