When trading futures, it’s important to understand the underlying market that the futures are tracking.  

Central banks like the US Federal Reserve help shape short- and long-term economic growth by restricting or expanding the supply of money circulating in an economy. They do this through the use of debt obligations called treasuries ‒ such as bills, notes, and bonds – in which the government borrows money from the holder for a specified period of time. Because treasuries are viewed as being among safest of all investments, they can be in high demand. 

The US Treasury market is the largest interest rate market in the world. As of 2020, the total outstanding amount of Treasury debt was nearly $21 trillion.1 Many global rates are pegged to US Treasury maturities, including many consumer rates like mortgages.

Micro Treasury Yield futures from CME Group provide access to benchmark maturity points along the yield curve based on actual OTR Treasury yield levels in futures contracts.
 

References

  1. Data source, SIFMA, sifma.org, July 2021

 

Additional information

ACCREDITED COURSE

In case you didn’t know, the CFA Institute allows its members to self-determine and report continuing education credits earned from external sources. CFA Institute members are encouraged to self-document such credits in their online CE tracker. CME Institute offers a variety of courses, webinars, and white papers to support your professional education.

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