What is Treasury Futures?

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Treasury Futures

Treasury Futures are standardized futures contracts on US government bonds traded at the CME that allow traders to speculate on interest rate changes and bond price movements or to hedge interest rate risk.

By Marco Bösing1 min read

What Are Treasury Futures?

Treasury Futures are standardized futures contracts traded on the Chicago Mercantile Exchange (CME) that are based on US government bonds of various maturities. The most important contracts are the ZB (30-Year Bond), ZN (10-Year Note), and ZF (5-Year Note).

These futures allow traders to speculate on changes in interest rates without directly owning the underlying bonds. Since bond prices and interest rates are inversely correlated, Treasury Futures rise when rates fall and decline when rates increase.

Treasury Futures are among the most liquid futures markets in the world and react strongly to economic data releases, FOMC decisions, and inflation expectations.

Read the full article: Trading Treasury Futures

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