NOB Spread Law and Legal Definition

NOB Spread or notes over bond spread is a futures spread trade involving the buying/selling of a Treasury note futures contract and the selling/buying of a Treasury bond futures contract.

NOB Spread relates to the relative prices of futures contracts for the purchase of Treasury bonds and Treasury notes. It is the spread between the price of T-note futures contract and T-bond futures contract. [Ginsburg v. Agora, Inc., 915 F. Supp. 733, 734 (D. Md. 1995)].