Head of Fixed Income Strategy
Micro Treasury Yield Futures Contracts offered by the CME Group are financial derivatives designed to track the yields of recently auctioned Treasury securities across various tenor points on the yield curve. These contracts enable market participants to speculate on or hedge against movements in interest rates.
Trading in Micro Treasury Yield Futures Contracts typically occurs on regulated exchanges, such as the CME Group, where buyers and sellers come together to exchange these futures contracts. They are traded electronically, providing ease of access and liquidity to market participants.
Like all derivative instruments, there are risks associated with trading Micro Treasury Yield Futures Contracts, including market risk, liquidity risk, and execution risk, which traders need to consider before engaging in trading activities.
In the Saxo platform it is possible to find Micro Treasury bond futures for the 2-, 10- and 30-year yields in the Screener, filtering for “Contract Futures” searching for the keyword “yield”.
Open Interest can be added to one of the columns to see which contract is the most liquid. In the example below, the Micro 10-Year Yield contract with expiry April 2024 is the most liquid.
Let's dive into the specifics of the Micro 10-year yield contract expiring in April.
The trading ticker indicates a contract size of 1000 and a tick size of 0.001.
To open a position, the initial margin requirement is 10%, with a maintenance margin of 9%.
For instance, purchasing one contract at 4.649% translates to a nominal value of 4,649 USD. To open this position, a minimum of 720 USD is required. Subsequently, the maintenance margin stands at 640 USD.
A yield increase from 4.649% to 4.65% yields a one-dollar gain, while a decrease to 4.648% results in a one-dollar loss.
If the 10-year yield rises from 4.649% to 5%, a profit of 351 USD is realized.
The Saxo platform offers continuous tickers that can elevate the trading experience for Micro Treasury Yield Futures contracts. Tickers like 2YYc1, 10Yc1, and 30Yc1 correspond to the 2-year, 10-year, and 30-year US Treasury yields, respectively, serving as valuable tools for charting purposes.
Our technical analysis specialist, Kim Cramer Larsson, frequently utilizes and discusses these tickers in their analysis. To access his analysis, click here.
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Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Uncover the shifting focus in 2024's FX markets towards growth resilience and relativity, away from bond yields and inflation stories.
Embrace the metal revolution on the commodity market in the coming year, with a focus on gold, silver, platinum, copper, and aluminum.
The gloominess of geopolitical conflicts and the repetitive nature of political agendas. What else does 2024 hold in store for us?
The disheartening cycle of unresolved geopolitical conflicts, the rise of polarizing political parties, and the stagnation of productivity.
Understand China's political landscape in Q4 2023 and the impact on counter-cyclical initiatives, with a focus on the pivotal Q1 2024.
