U.S. Treasury Bond Futures Contract

U.S. Treasury bonds, or T-Bonds, represent a loan to the U.S. government. T-Bond holders are creditors rather than equity or share-holders. The U.S. government agrees to repay the principal or par amount of the security at maturity, plus coupon interest. Participating in 30 year T-Bond futures allows a trader to assess the direction of interest rates as well the ability to hedge risk at the short end of a yield curve. 30 year T-Bond futures can also allow an investor to use a different trading strategies such as spread trading against different Treasury futures.

Source: CME Group

The above information was derived from sources believed to be reliable and accurate. It is provided without guarantees and is subject change without notice.