3-Year U.S. Treasury Note futures provide a marketplace for managing the interest rate exposure associated with the 3-year sector of the U.S. Treasury yield curve. They open up a variety of new risk management and trading opportunities, including implied spreads against other Treasury futures contracts.

The contract is comparable to 2-Year Treasury Note futures, with similar contract specifications and electronic trading algorithm. However, it provides a more germane pricing benchmark for the three-year sector of the yield curve than either 2-Year or 5-Year Note futures. The remaining term to maturity of between two-and-three-quarters and three years for issues to be eligible for delivery distinguishes the 3-Year from these other Treasury note futures contracts.

Things to know:

• Trading takes place:
  • On the CME Group trading floor during open outcry trading hours
  • Electronically on the CME Globex platform
    • Virtually around the clock, around the world
    • Complete price transparency and anonymity
• Settled via physical delivery
• CME Clearing matches and settles all trades and guarantees counterparty creditworthiness
• Implied intercommodity spread trading between 3-Year T-Note and other Treasury futures contracts is available on CME Globex