U.S. treasury futures quotes-FUTU Help Center (2024)

FAQs

How are US Treasury futures quoted? ›

In U.S. Treasury futures, the basis is the price spread, usually quoted in units of 1/32, between the futures contract and one of its eligible delivery securities. In Futubull, the U.S. Treasury futures are quoted in units of 1/10.

Among the most actively watched benchmarks in the world, the 10-Year U.S. Treasury Note futures contract offers unrivaled liquidity and capital-efficient, off-balance sheet Treasury exposure, making it an ideal tool for a variety of hedging and risk management applications, including: interest rate hedging, basis ...

A 10-year Treasury note futures contract pays interest at a fixed rate once every six months and pays the face value to the holder at maturity.

At the expiration of a futures contract, the contract is usually settled one of two ways, through a physical settlement involving a delivery of the underlying product or by means of a financial, or cash, settlement to an index or widely accepted price benchmark.

The price of a futures contract is the spot price of an underlying asset, adjusted for interest, time, and paid out dividends. The variance between the spot price and futures price forms the 'basis of spread. ' The spread is the maximum at the beginning of the series but converges towards the settlement date.

Treasury bills are quoted in yield form, not in prices. This means the numbers you see are in basis points. For example, a bid of 4.655 is 465.5 basis points.

Yes, it is possible to lose more money than you initially invested in futures trading. This is because futures contracts are leveraged, which means you can control a large position with a relatively small amount of investment upfront.

So while options on futures have the potential to make more efficient use of your capital, they also have the potential to expire worthless and lose value within a certain period of time.

The most traded futures contract globally is E-mini S&P 500, with a daily trading volume averaging at 1.6 million contracts. The CME Group's WTI crude oil futures contract is among the most liquid futures contracts worldwide, with a daily trading volume of approximately 1.2 million contracts.

To determine the current futures price, G(0), – we start at the expiration date of the futures, when the futures price is equal to the spot price of the underlying bond, – then work backwards each mark-to-market date to determine the futures price that makes the next marking to market payoff worth zero.

Why buy Treasury futures? ›

Introduction. CBOT U.S. Treasury futures are standardized contracts for the purchase and sale of U.S. government notes or bonds for future delivery. The U.S. government bond market offers the greatest liquidity, security (in terms of credit worthiness), and diversity among the government bond markets across the globe.

Cheapest to deliver is the cheapest security that can be delivered in a futures contract to a long position to satisfy the contract specifications. It is common in Treasury bond futures contracts.

While the cash market offers immediacy, the futures market provides avenues for hedging and speculation. Choosing the right market depends on one's financial goals and risk appetite.

The term “wild card option” refers to a right held by the seller of a Treasury bond futures contract. It permits the seller to wait until after-hours trading before delivering its bonds to the futures contract buyer.

Price Increments and Their Values

Since futures on Treasury bonds and 10- and 5-year notes are all contracts with a $100,000 face value, the value of a full point is $1,000 for each of these contracts. A one-point move on a $200,000 face value 2-year T-note futures contract has a value of $2,000.

To determine the current futures price, G(0), – we start at the expiration date of the futures, when the futures price is equal to the spot price of the underlying bond, – then work backwards each mark-to-market date to determine the futures price that makes the next marking to market payoff worth zero.

U.S. Treasury Bond Futures,Jun- (ZB=F) Stock Price, News, Quote & History - Yahoo Finance.

The price of an FX futures product is based on the currency pair's spot rate and a short-term interest differential. The pricing formula is similar to how FX forwards are priced in the OTC market.

Fed Fund Futures - Contract Specifications

The price is simply the implied rate subtracted from 100. For example, if the average monthly Fed Funds rate for September is 1.20% the futures price would be 100 - 1.20 = 98.800. At final settlement, Fed Fund futures are cash-settled, there is no physical delivery involved.