Trading Yield Curves

This course builds on participants’ knowledge of fixed income, looking in-depth at how to trade the yield curve.

It will start by looking at how bonds can be traded to take advantage of an opinion of future interest rates changes, or the prospects of a bond issuer. Participants will consider a range of tradition strategies including, outright positions, steepeners, flatteners and butterfly trades.

The course will then explain the techniques that can be used to minimise and hedge risk in these position.


This course is for individuals with a basic knowledge of the bond market.

Learning Outcomes

At the end of this course delegates should understand:

  • The mechanics of directional bond trading
  • How to construct DV01 neutral steepeners and flatteners
  • Butterfly trades and relative value trading

Course Content

Directional bond trading

  • Outright long and short positions
  • Targeting risk values
  • Active fund managers

Steepening and flattening curve trades

  • Parallel shifts
  • Targeting risk values
  • Bull and bear steepeners
  • Duration hedging curve flattener

Exercises: Constructing DV01 neutral steepeners and flatteners

Trading the belly

  • Positive and negative flies
  • Hedge funds and real money investors

Relative value trading

  • Fitting a yield curve


of our clients would recommend Alpha to a colleague or peer


of a cohort was promoted within 2 years after participating in an Alpha course.


of participants felt more confident in their role, following an Alpha commercial leadership course.

Why study with Alpha?

Innovation and creativity born from experience

We are thought leaders in instructional and learning journey design and holistic solution architects. We have extensive finance and investments experience combined with skills application to deliver performance improving results. We develop immersive learning environments that maximize time to productivity, support talent retention and added value to improving quality of hires.

Knowledge Exchange Evangelists

We are focused on mining the embedded organisational intellectual capital for the benefit of the next generation. We create and curate best in class practice gathered from our experience with the leading financial institutions. We design our programmes with the end in mind – what results are you trying to achieve with this intervention? What metrics will we set ourselves to achieve that?

Generation Proof

Quality and innovation, using current market and industry best practices, have made us a trusted partner in delivering dynamic and motivating training for the financial and capital markets. Our programmes are generation proof and responsive to evolving learner needs and styles. Our solutions use a multi-stakeholder engagement strategy that expands beyond relationships between the learner and learning provider. We create connections with managers, peers and the wider business to drive impactful return on investment..

Enquire now

"*" indicates required fields

This form collects your contact information so that we can correspond with you.
Check out our privacy policy for more information about how we protect and manage your data.
This field is for validation purposes and should be left unchanged.
The team are so friendly and pleasant to work with, everyone is very professional and keen to help us. Building a relationship over the past couple of years helps us to feel like the Alpha team are even more able to understand our needs and provide more proactive solutions.
Find out more about our in-house training courses