U.S. T-Note Futures Margin & Contract Specifications

What are U.S. Treasury Futures?

U.S. Treasury futures are interest rate derivatives that track U.S. government bonds. They are listed and traded on the CME/CBOT, covering various maturities: 2-year, 5-year, 10-year, 30-year, and the ultra-long-term Ultra 30-year version. These products are designed for hedging interest rate risk, trading the yield curve (carry trades), and reflecting macroeconomic policy expectations.

Factors Affecting U.S. Treasury Futures Prices

1. Federal Reserve Policy

Treasury futures of different maturities have varying sensitivities to interest rates:

Long-term (10/30/Ultra 30-year): Highly responsive to inflation expectations and anticipated Fed actions.

Short- to medium-term (2/5-year): Reflect expectations for short-term rate adjustments and Fed meeting directions.

2. Inflation and Deflation Expectations

Rising inflation → long-term yields increase → bond prices fall → long-term futures under pressure.

Deflation expectations → higher demand for bonds as a safe haven → futures prices rise.

3. Economic Data and Growth Outlook

Key indicators like PCE, CPI, and nonfarm payrolls influence market expectations of Fed policy, affecting short-, medium-, and long-term futures. Weak economic data often push bonds higher as investors seek safety.

4. Global Market Linkages and Capital Flows

Shifts of global capital into or out of U.S. Treasuries can move futures prices. Heightened market volatility often drives long-term futures up (yields down) due to safe-haven demand.

5. Yield Curve Shape and Inter-Maturity Trades

Traders frequently perform curve trades (e.g., 2s10s, 5s10s) to arbitrage yield differences. Position adjustments based on spread changes or funding costs can cause short-term futures price movements.

6. Cheapest-to-Deliver (CTD) Bonds and Conversion Factors

Changes in the CTD bond affect the futures-to-cash spread. ETF or fund rebalancing can also trigger short-term futures fluctuations.

 

U.S. Treasury futures across different maturities are essential tools for interest rate risk management, yield curve trading, and macro asset allocation.

• Short-term maturities (2-, 5-year): Reflect Fed policy expectations.
• Medium- to long-term maturities (10-, 30-year, Ultra 30-year): Reflect inflation expectations and global risk sentiment.

Whether you aim to hedge interest rate risk, perform passthrough trades, or arbitrage yield curve spreads, this series of products offers high liquidity and professional participation, making them crucial instruments for diversification and capturing interest rate movements.

Ultra US Treasury Bond 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 US Treasury Bond Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for Ultra US Treasury BondFutures, US T-BONDFutures, U.S. T-Note 10 YrsFutures, U.S. T-Note 5 YrsFutures, U.S. T-Note 2 YrsFutures.

Ultra US Treasury BondLast Trading Day

Futures