Bill Baruch's 10-Year Futures Trade

Bill Baruch of Blue Line Futures said on CNBC's "Futures Outlook" inflation is going to show up this year. He also thinks the Fed is considering tapering bonds at the end of the year. He believes the Fed is going to let the belly of the yield curve rise a little bit and keep the shorter end suppressed. That means the 10-Year yield can rise. Since he is trading prices, which are the inverse of the yield, he wants to sell the 10-Year Treasuries.

Baruch wants to sell the March 10-Year Futures at 137. His target price is 134'16 and he would place a stop loss at 138. He wants to risk $1,000 to make $2,500.