Among the most actively watched benchmarks in the world, the 10-Year US Treasury Note futures contracts offers unrivaled liquidity and capital-efficient, off-balance sheet Treasury exposure, making it an ideal tool for a variety of hedging and risk management applications, including: interest rate hedging, basis trading, adjusting portfolio duration, curve trading, expressing directional views, and more.
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Features and benefits
Deep and resilient liquidity
10-Year futures are the most actively traded Treasury product on planet, and it's share of risk transfer grows during non-U.S hours, and during periods of higher volatility.*
Enjoy off-balance sheet exposure, concentration of positions in a single line item, netting, transparency, and initial margins that reflect one-day period of risk.
Access liquidity multiple ways, such as via the central limit order book, blocks and EFRPs.
Deep options markets
Two options expiries every week (Wed and Fri) provide flexibility to manage existing positions and greater precision to trade high impact economic events.
Explore this product in depth
Enhanced 3-Year Note futures
To better serve the evolving needs of today’s treasury market, we’re introducing an enhanced 3-Year Treasury Note futures contract with a reduced tick size, a bigger deliverable basket, and more.
Trade across the US Treasury curve
Spread 10-Year Treasury futures versus other benchmark tenors to express a view on the shape of the yield curve curve, adjust portfolio duration, and unlock cross-margin savings.
2-Year and 10-Year
Trade the 2s10s spread, one of the most-watched economic indicators, with up to 50% margin offsets
5-Year and 10-Year
Trade the highly active 5s10s spread with margin offsets of up to 68%
10-Year and Ultra 10-Year
Express a vierw on the belly of the curve with margin offsets of up to 68%
10-Year and T-Bond
Express a view on shape of the the long-end of the curve with margin offsets of up to 68%
Margins offsets are subject to change based upon market conditions.
Spread Treasury futures vs. IRS and cash markets
Trade swap spreads more efficiently
Invoice Swaps Spreads are packaged trades that involve buying (selling) UST futures and paying (receiving) fixed on a related interest rate swap with a similar risk profile, which gives our clients a more efficient alternative for trading swap spreads.
- Invoice Swap Spreads represent the difference between forward yields on UST futures, and the fixed rate on comparable interest rate swaps.
- Provides off-balance sheet exposure and precise alignment of dates between futures and swaps.
- Clearing both legs of the swap at CME Group can generate margin savings as high as 81% through portfolio margining.
Trade the Treasury basis
A US Treasury basis trade represents the price differential, expressed in 1/32s, between UST futures and an underlying delivery eligible US Treasury note or bond.
- Traded as a price spread, basis trades are privately negotiated and executed outside the CLOB.
- Compliant with Rule 538 if both sides of the basis trade are reported to CME Clearing by end of day.
- Allows traders and risk managers to move from cash-to-futures, and futures-to-cash with less execution risk and market impact cost.
- Futures leg submitted to CME Clearing as an EFP, cash leg processed through client’s security account.
Key economic reports and factors that move markets
Meets 8 times a year on U.S. monetary policy and the key interest rate; any change will impact the markets.
The U.S. Treasury regularly sells new U.S. treasuries at auction to finance public debt, which impacts supply and, in turn, price.
1st Friday of each month by the Bureau of Labor Statistics; gauges how many jobs the U.S. economy added /lost over last month. Increase indicates economic growth, is a key indicator for the Fed.
Mid-month by BLS; measures inflation or cost-of-living changes, tracking the average price of a basket of goods and services. Is a key driver of Fed policy.
Take self-guided courses on US Treasury futures and options products.
If you're new to futures, the courses below can help you quickly understand the US Treasury market and start trading.
Contact an Interest Rate expert
Connect with a member of our expert Interest Rate team for more information about our products.