Us Treasury Futures Prices Rally

By Craig Bewick
JAN 13 2021

US Equities were rather directionless today and ended mixed with the Russell 2000 falling slightly and the other three major indexes up a bit.  Implied volatility in the Equity Index options at CME Group was broadly lower.  Commodity markets at CME Group were relatively less active today though Corn futures prices were up another 1.4% and Platinum futures prices, which we don’t cover extensively here in the Key Takeaways section, were up by over 3.5%. 

Longer term US Treasury futures prices, which have generally trended lower recently, reversed a bit today as the US Bond futures price was up by over 1 point and the Ultra T-Bond was up by over 2 points.  Despite the recent price moves in the US Treasury futures, the options market is trading at the lowest implied volatility levels that we’ve seen since the end of November.  A QuikStrike graph of both the price and volatility in the US Bond contract can be found below. 

ABOUT THE AUTHOR

Craig Bewick has spent 25 years in futures and options markets, starting at CBOT and CME working in risk management, regulatory, technology, product management and client development. 

After 8.5 years with WH Trading LLC, Craig returned to CME Group as the Director, Client Development and Sales, working to educate and promote futures trading. Craig currently writes for InFocus Options Corner.

Connect with Craig at activetrader@cmegroup.com

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