US Treasury
Notes Trading Defined and Explained
The CBOT trades
futures and options on 2-year, 5-year- and 10-year U.S. Treasury
notes. These notes are primarily the same, but vary in
volatility and tick size. US Treasury notes are barometers for
US and International interest impacts.
US Treasury Notes Trading
Prices/Rates
The 10-year Treasury is a benchmark for setting mortgage
interest rates.
There are
multiple aspects that Treasury traders must understand as each
US Treasury Note Trading product differs slightly:
The T-bond Futures Trading Unit is a bond with $100,000 mature
face value:
10-year
T-note Futures =
One U.S.
Treasury note with $100,000 mature face value
5-year
T-note Futures =
One U.S.
Treasury note with $100,000 mature face value
2-year
T-note Futures =
One U.S.
Treasury note with $200,000 mature face value
The tick size for T-bond futures is 1/32:
10-year
T-note Futures =
1/32
5-year
T-note Futures =
1/2 of 1/32
2-year
T-note Futures =
1/4 of 1/32
US Treasury Notes Trading
software
Wouldn?t it be
super to have a crystal ball to predict the future when you
trade? The closest
you will get to a crystal ball in your trading is with
VantagePoint software.
Using forecasts of market trend direction in conjunction
with predicted highs and lows greatly increases the potential
for successful Interest Rates futures trades. VantagePoint
trading software allows you to predict market moves days ahead
of when they happen with nearly 80% accuracy. VantagePoint even
lets you to visualize forecasts and indicators graphically on
your computer for ease of use.
US Treasury
Notes Trading Major Indicators and indices:
Contract Months
for T-bond Futures are March, June, September, December
10-year
T-note Futures =
March, June,
September, December
5-year
T-note Futures =
March, June,
September, December
2-year
T-note Futures =
March, June,
September, December
The Last Trading Day for T-bond Futures is the Seventh business
day before the last business day of the delivery month.
10-year
T-note Futures =
Seventh
business day before the last business day of the delivery month
5-year
T-note Futures =
Seventh
business day before the last business day of the delivery
month.
2-year
T-note Futures =
The earlier of
(1) the second business day prior to the issue day of the 2-year
note auctioned in the current month, or (2) the last business
day of the calendar month.
|
