Eurozone Government Bonds Futures Margin & Contract Specifications

What Are Eurozone Government Bonds?

There are four types of euro-denominated government bond futures available to investors:

• 30-Year Euro Buxl (Buxl): Ultra-long-term bonds with remaining maturities of 24–35 years; extremely sensitive to interest rate changes.

• 10-Year Euro Bund (Bund): Long-term bonds with remaining maturities of 8.5–10.5 years; high interest rate sensitivity.

• 5-Year Euro Bobl (Bobl): Medium-term bonds with remaining maturities of 4.5–5.5 years; moderate interest rate sensitivity.

• 2-Year Euro Schatz (Schatz): Short-term bonds with remaining maturities of 1.75–2.25 years; lower interest rate sensitivity.

Factors Affecting Eurozone Government Bond Prices

1. European Central Bank (ECB) Monetary Policy and Interest Rate Environment

The ECB’s policy rates determine the market’s funding costs. When the ECB raises rates to curb inflation, newly issued bonds offer higher yields, causing the prices of existing bonds to fall.

2. Eurozone Inflation Expectations and Economic Growth

Bonds provide fixed income, and inflation erodes future purchasing power. If inflation exceeds expectations—such as due to energy prices or geopolitical risks—investors demand higher yields as compensation, pushing bond prices lower.
If Germany and the eurozone experience a strong economic recovery, capital may rotate from bonds into equities, putting selling pressure on long-term bonds. Conversely, during economic stagnation, funds tend to flow into long-term bonds as safe havens.

3. Fiscal Policy and Bond Supply

Because euro 30-year bond futures track German government bonds, Germany’s fiscal position is critical. Increases in defense spending or energy-transition investments can boost bond issuance, pressuring prices. Although German bonds are often viewed as safe havens, a surge in supply can still weigh on prices.
When the ECB implements quantitative tightening (QT)—reducing asset purchases or shrinking its balance sheet—more bonds are released into the market, which typically raises yields and lowers bond prices.

4. Yield Differentials

If U.S. Federal Reserve (Fed) rates are significantly higher than those in Europe, capital may flow to the U.S., reducing demand for eurozone bonds and pressuring prices.

5. Safe-Haven Demand

Government bonds are generally considered safe-haven assets. During financial crises or periods of heightened geopolitical risk, capital tends to flow into bonds, driving prices higher.

6. Political Stability

Political developments within the EU—such as elections, budget disputes, or geopolitical conflicts—can affect investor confidence. For example, political instability in France has often led to sharp volatility in French government bond prices, with spillover effects across the eurozone bond market.

Euro-Schatz Margin

How much money is needed to trade futures? At the beginning, the required margin is the initial margin. While holding a position, the margin after deducting floating profits and losses must remain above the maintenance margin; otherwise, a margin call will be issued. For day-trading margin, only half of the margin is required, provided the position is closed before the market closes.

Foreign Futures

Euro-Schatz Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for Euro-SchatzFutures, Euro-BoblFutures, Euro-BundFutures, Euro-BuxlFutures.

Euro-SchatzLast Trading Day

Futures