U.S. Treasury Bond Futures and Options
T-Bonds / T-Notes Market

Learn the most effective strategies for buying and selling options on futures contracts. Also learn producer and consumer hedging strategies.

*The information contained within this webpage comes from sources believed to be reliable. No guarantees are being made to the content's accuracy or completeness.

Here is the brochure from the CME Group about treasury futures and options.

Treasury Note and Bond brochure

U.S. Treasury bond futures and Treasury note futures have grown to become fundamental risk management tools for investors around the world. Managing interest rate risk is a very necessary component of most investors long term investment portfolio strategies. Real estate investors, fixed income investors, stock investors, currency investors and a multitude of other investor types are all influenced by short, medium and long term interest rates. All of these investors can effectively manage their interest rate risk by using treasury note futures and treasury bond futures contracts and options.

In today's ever-changing global economy, holding fixed-income securities is tantamount to speculating on the futures direction of interest rates. With the Treasury Bond futures and Treasury Note futures contracts at the Chicago Board of Trade and the Mid America Commodity Exchange, institutional and individual investors can help control the interest rate risk in holding fixed-income securities and help optimize the performance of those interest rate sensitive investments.

Many savvy investors with bond portfolio's hedge their interest rate risk using treasury note futures and treasury bond futures. Whether market predictions call for rising or falling rates, you'll find that U.S. Treasury Bond (T bond) and (T Note) futures and options are an effective, low-cost way to help you meet your individual objectives. Learn More >>>

Meeting the Needs of a Changing Marketplace

Interest rate futures were pioneered by the Chicago Board of Trade (CBOT) in 1975 in response to a growing market need for tools that could protect against sharp and frequent swings in the cost of money.

U.S. Treasury bond futures were first introduced, followed by futures on 10-year, 5-year, and 2-year U.S. Treasury notes. Over the past two decades, contract volume has grown to unprecedented levels, reflecting the growth of the underlying instruments and profound changes in the interest rate futures marketplace.

Today, CBOT Treasury futures are the most actively traded interest rate future contracts in the world. Bond future trading has become a popular way to hedge interest rate risks in fixed income portfolios.

The CBOT offers futures on 2-year, 5-year, and 10-year U.S. Treasury notes and 30-year U.S. treasury bonds. Whether you're seeking to manage short, medium, or long-term risk, there is a contract that meets your needs.

*Contract information changes from time to time. Please click here to see the most recent contract specifications and click here for the most recent trading hours.

Contract Specifications Treasury Bond and Note Futures

Trading Unit

Treasury bond Futures - One U.S. Treasury bond with $100,000 face value at maturity.

10-year Treasury note Futures - One U.S. Treasury note with $100,000 face value at maturity.

5-year Treasury note Futures - One U.S. Treasury note with $100,000 face value at maturity.

2-year Treasury note Futures - One U.S. Treasury note with $200,000 face value at maturity.

Deliverable Grades

T-bond Futures - Bonds with at least 15 years remaining to maturity.

10-year Treasury note Futures - Notes with 6 1/2 to 10 years remaining to maturity.

5-year Treasury note Futures - Notes with 4 years 3 months to 5 years 3 months remaining to maturity.

2-year Treasury note Futures - Notes with 1 year 9 months to 2 years remaining to maturity.

Tick Size

T-bond Futures - 1/32

10-year Treasury note Futures - 1/32

5-year Treasury note Futures - 1/2 of 1/32

2-year Treasury note Futures - 1/4 of 1/32

Price Limit

Treasury bond Futures - 3 points, expandable to 4 1/2 points.

10-year Treasury note Futures - 3 points, expandable to 4 1/2 points.

5-year Treasury note Futures - 3 points, expandable to 4 1/2 points.

2-year Treasury note Futures - 1 point, expandable to 1 1/2 points.

Contract Months

Treasury bond Futures - March, June, September, December

10-year Treasury note Futures - March, June, September, December

5-year Treasury note Futures - March, June, September, December

2-year Treasury note Futures - March, June, September, December

Trading Hours

Treasury bond Futures - 7:20a.m. -2:00p.m., 2:30-4:30p.m., 5:20p.m.-8:05p.m., 10:30p.m.-6:00a.m.

10-yearTreasury note Futures -7:20a.m. -2:00p.m., 2:30-4:30p.m., 5:20p.m. -8:05p.m., 10:30p.m. -6:00a.m.

5-year Treasury note Futures - 7:20a.m. -2:00p.m., 2:30-4:30p.m., 5:20p.m. -8:05p.m., 10:30p.m. -6:00a.m.

2-year Treasury note Futures -7:20a.m. -2:00p.m., 2:30-4:30p.m., 5:20p.m. -8:05p.m., 10:30p.m. -6:00a.m.

Ticker Symbol

Treasury bond Futures - US

10-year Treasury note Futures - TY

5-year Treasury note Futures - FV

2-year Treasury note Futures - TU

Last Trading Day

Treasury bond Futures -Seventh business day proceeding the last business day of the delivery month.

10-year Treasury note Futures -Seventh business day proceeding the last business day of the delivery month

5-year Treasury note Futures -Seventh business day proceeding the last business day of the delivery month.

2-year Treasury 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.

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