Treasury Futures Contract

Treasury Futures Contract

A futures contract in which one agrees to buy a U.S. Treasury security at a certain price at some stated date in the future, regardless of what the spot price is on that date. One buys a Treasury future if one expects Treasury securities to rise in price (because one wants to lock in the lower price). For the same reason, one sells a Treasury future if one expects the price to fall. Treasure futures are traded on the CBOT.
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The Board of Trade, for example, says its Treasury futures contract has risen 54 percent in the past five years, while the over-the-counter market has grown fivefold.
Based on swaption volatility jumping, 10 year treasury futures contract dropping sharply and a possible ending to the 25 year secular bull market, it may be time to "carefully review your portfolio and balance sheet sensitivity to rising rates.
Via the new connectivity, trading and brokerage firms, as well as hedge funds and commodity trading advisors, can now leverage RTS' low latency algorithmic trading solutions to spread Eris Standard Swap Futures and against cash Treasuries and Treasury futures contracts.
Market prices for 2-year and 10-year Treasury futures contracts may not capture precisely the underlying changes in the 2-year yield and the 10-year yield.
Treasury futures contracts will offer clients an easy way to trade synthetic Treasury yield curve and swap spread strategies, with the added benefit of cross-margining against CME Group benchmark interest rate products.
These trends will have as great an impact on Treasury markets structure as the 2004-2005 automation of Treasury futures contracts, when non-dealer volume on the IDB platforms nearly tripled in a year.
Comprehensive system testing and mock trading sessions are scheduled for May, opening the way for live trading in quarterly Treasury futures contracts to begin in June, he said.
Initially the exchange will begin trading Treasury futures contracts on two-year, five-year, 10-year notes and 30-year bonds, as well as calendar spreads.
In addition, CME Group will offer pre-defined, implied inter-commodity spreads on CME Globex for 3-Year Treasury Note futures versus other existing Treasury futures contracts.
CHAPTER 20: Use of Stock Index Futures and Treasury Futures Contracts in Portfolio Management.
Treasury futures contracts traded on the Chicago Board of Trade (CBOT).
Treasury futures contracts, CX utilizes a patented Interactive Matching(SM) technology and is built upon the eSpeed proprietary trading platform.

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