> ## Documentation Index
> Fetch the complete documentation index at: https://financecontext.com/llms.txt
> Use this file to discover all available pages before exploring further.

# /analyze-bond-basis

> Analyze the bond futures basis with CTD identification, implied repo rate, and basis trade assessment

## What is Bond Futures Basis Trading?

Bond futures are standardized contracts to buy or sell government bonds at a future date. They are among the most liquid instruments in fixed income markets. The **basis** is the difference between a cash bond's price and the equivalent futures contract price (adjusted by a conversion factor). Basis trading exploits mispricings between these two markets.

The **cheapest-to-deliver (CTD)** bond is the specific bond from the deliverable basket that is most economical for the futures seller to deliver at expiration. The CTD drives the futures price. The **implied repo rate** is the return you would earn from buying the cash bond, selling the future, and delivering at expiration -- if the implied repo rate exceeds the market repo rate, the basis is cheap (futures are rich relative to cash); if below, the basis is rich (futures are cheap).

## Command

```bash theme={null}
/analyze-bond-basis <bond future RIC e.g. FGBLc1>
```

Analyzes the basis by pricing the future, identifying the CTD, computing gross and net basis, and assessing basis trade opportunities.

## Common Futures RICs

| Contract             | RIC    |
| -------------------- | ------ |
| Euro Bund            | FGBLc1 |
| US 10Y Treasury Note | TYc1   |
| UK Gilt              | FFIc1  |

## Workflow

<Steps>
  <Step title="Price the Future">Calls `bond_future_price` to identify CTD, delivery basket, and contract DV01.</Step>
  <Step title="Price the CTD Bond">Calls `bond_price` for clean/dirty price, yield, duration, and DV01. Computes gross basis and net basis.</Step>
  <Step title="Compute Implied Repo">Calls `interest_rate_curve` for short-end rate as repo proxy. Compares implied repo to market repo.</Step>
  <Step title="Historical Context">Calls `tscc_historical_pricing_summaries` for 3M daily data on both future and CTD. Assesses basis trend and range.</Step>
  <Step title="Synthesize">Presents basis trade assessment (long/short/neutral), implied repo comparison, and detailed analytics.</Step>
</Steps>

## Output

Lead with basis trade assessment and implied repo comparison. Follow with future summary, CTD analytics, basis calculation table, and historical context.

## Related Skill

See the [Bond Futures Basis skill](/en/partner-built/lseg/skills/bond-futures-basis) for domain knowledge on basis mechanics and trading strategies.