Long-Term U.S. 10-Year Treasury Futures Margin & Contract Specifications

What Are Long-Term U.S. 10-Year Treasury Futures?

Ultra 10-Year U.S. Treasury Note Futures (TN) were launched by the Chicago Mercantile Exchange (CME) in 2016 and differ significantly from standard 10-year U.S. Treasury futures.
In standard 10-year Treasury futures, deliverable securities typically have 6.5 to 10 years remaining to maturity, and sellers usually choose the cheapest-to-deliver bond. As a result, standard 10-year futures often behave more like 6–7 year bonds.

In contrast, Long-Term (Ultra) 10-Year U.S. Treasury futures require deliverable bonds to have 9.5 to 10 years remaining to maturity. This means they closely track newly issued 10-year Treasuries. Because of the longer effective duration and tighter delivery window, these contracts are more sensitive to interest rate changes.

Comparison of Long-Term 10-Year vs. Standard 10-Year Treasury Futures

• Long-Term 10-Year U.S. Treasury Futures: Larger contract size, longer effective maturity, and higher interest rate sensitivity; suitable for institutional and professional traders.
• Standard 10-Year U.S. Treasury Futures: Moderate interest rate sensitivity; suitable for general trading and hedging purposes.

Factors Affecting the Price of Long-Term U.S. 10-Year Treasury Futures

1. U.S. Federal Reserve (Fed) Monetary Policy

• Interest Rate Decisions: When the Fed raises rates, required returns increase and existing bond prices fall, weighing on long-term 10-year Treasury futures. Conversely, rate cuts tend to push futures prices higher.
• Quantitative Tightening/Easing (QT/QE): Fed purchases of Treasuries under QE support bond prices, while balance sheet reduction under QT—reducing Treasury purchases—puts downward pressure on bond prices.

2. Macroeconomic Data

• Inflation Expectations: Bonds are fixed-income assets, and inflation erodes future purchasing power. Rising inflation leads investors to demand higher “inflation compensation” (higher yields), causing bond prices to fall. Conversely, easing inflation signals potential future rate cuts and typically supports bond prices.
• Economic Growth Data: Bond prices are often seen as an economic “barometer.” For example, a sharp increase in U.S. Nonfarm Payrolls (NFP) or stronger-than-expected GDP growth can raise concerns about overheating and sustained high rates, leading to lower bond prices.

3. U.S. Treasury Supply and Issuance Costs

The volume of bond issuance affects prices. If the U.S. Treasury issues large amounts of new 10-year debt to finance deficits, excess supply can pressure bond prices and futures.
Additionally, an excessive national debt burden may undermine investor confidence, prompting demands for higher risk premiums and pushing bond prices lower.

4. Safe-Haven Demand

U.S. Treasuries are considered one of the world’s premier safe-haven assets. During wars, political unrest, or financial crises, global capital often flows into Treasuries, driving prices higher. Similarly, during sharp equity market volatility, investors may rotate from stocks into bonds, providing additional support to Treasury prices.

Ultra 10 Years Treasury Note 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

Ultra 10 Years Treasury Note Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for Ultra 10 Years Treasury NoteFutures.

Ultra 10 Years Treasury NoteLast Trading Day

Futures