Bond Futures

Bond Futures

An agreement to buy or sell a bond at a certain date at a certain price. That is, Investor A may make a contract with Investor B in which A agrees to buy a certain number of B's bonds at 90% of their par value on January 15. This contract must be honored whether the price of the bonds goes to 80% or 125% of par. As with all futures contracts, bond futures contracts can help reduce volatility in certain markets, but they contain the risks inherent to all speculative investing. These contracts may be sold on the secondary market, but the person holding the contract at its end must take delivery of the underlying asset.
References in periodicals archive ?
Closing prices of 10-year government bond futures and the yield on the latest issue of the 10-year bond on the Tokyo Stock Exchange on Friday.
dollar value of the returns of German sovereign bond futures, Italian sovereign bond futures and Japanese sovereign bond futures.
The new format for Japanese gov't bond futures prices is as follows:
Deutsche Bank has issued two ETNs linked to the Ultra Bond futures.
The ETNs are senior unsecured obligations issued by Deutsche Bank AG, London Branch, linked to the month-over-month performance of a total return version of the DB Long US Treasury Bond Futures Index or the DB Short US Treasury Bond Futures Index.
The DB Long US Treasury Bond Futures Index measures the performance of a long investment in Ultra Bonds futures and the DB Short US Treasury Bond Futures Index measures the performance of a short investment in Ultra Bond futures.
Futures versions of this course will include tutorials on bond futures, zero-coupon bonds and bond pricing and hedging.
The concept of basis as used in the bond futures market
Nuveen Asset Management, the funds' investment adviser, has added the ability to not only sell but also buy bond futures contracts, receive fixed pay floating interest rate swap contracts, or buy an expanded array of options on bond futures and options on interest rate swap contracts to better facilitate adjustments in a portfolio's absolute level of interest rate risk shorter or longer, to enable them to more precisely align of their interest rate risk with that of the broader municipal market.
SISCO), China's leading securities broker and investment banker, today said that SISCO's losses from trading in Chinese government bond futures had been exaggerated by recent speculative press reports and did not pose a threat to the Company.
Clements added: "SISCO has experienced no liquidity problems in connection with its recent bond futures trading activity.