10-Year Australian Government Bond Futures Margin & Contract Specifications

What Is the 10-Year Australian Government Bond?

The 10-Year Australian Government Bond is a long-term interest rate futures contract listed on the Australian Securities Exchange (ASX). It is one of the most important long-term interest rate benchmarks in Australia’s financial markets. The underlying bonds typically have a remaining maturity of approximately 8 to 12 years, with an average of about 10 years.

Key Factors Affecting the Price of the 10-Year Australian Government Bond

1. Reserve Bank of Australia (RBA) Policy

Although the 10-year bond is a long-term instrument, the RBA’s policy rate sets the baseline cost of funding in the market. If the market expects the RBA to raise interest rates to combat inflation, yields on 10-year bonds usually rise, causing existing bond prices to fall. The RBA’s outlook on future economic conditions directly influences how investors price long-term interest rates.

2. Australian Inflation and Economic Growth

Bonds provide fixed interest payments. When inflation rises, the real value of future cash flows declines. Therefore, when inflation data (such as CPI) comes in above expectations, investors demand higher “inflation compensation” (i.e., higher yields), leading to lower bond prices.
Australia’s economy is driven by domestic demand, real estate, and commodities. When economic growth slows and unemployment rises, expectations of rate cuts increase, which tends to push 10-year Australian government bond prices higher.

3. Global Interest Rates

Australian government bond prices are highly correlated with U.S. Treasury bonds. International investors compare yields between Australia and the United States. If U.S. 10-year Treasury yields surge due to Federal Reserve policy, capital may flow out of Australia and into the U.S., putting downward pressure on Australian bond prices.

4. Australian Dollar Exchange Rate and Commodity/Energy Prices

As a major commodity exporter, Australia’s economic momentum has a direct impact on its bond market. Rising commodity prices—such as iron ore and energy—or strong export performance generally signal a healthy economy, which can strengthen the Australian dollar and attract foreign investors to Australian government bonds, providing price support.

5. Government Fiscal Policy and Bond Supply

The total amount of bonds issued by the Australian government affects supply. If fiscal deficits widen and the government significantly increases issuance of 10-year bonds, excess supply—assuming demand remains unchanged—can lead to lower bond prices.
Australia enjoys a AAA credit rating, and its government bonds are regarded as a safe haven. However, if fiscal conditions deteriorate and raise the risk of a credit rating downgrade, Australian bond prices could be negatively affected.

6. Global Risk Sentiment

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.

7. Institutional Demand

Australian pension funds and insurance companies are major buyers of Australian government bonds. Changes in asset allocation by these institutions can have a significant impact on liquidity and pricing in the Australian bond market.

Australian 10 Year T-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

Australian 10 Year T-Bond (specific legal person) Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for Australian 10 Year T-Bond (specific legal person)Futures.

Australian 10 Year T-BondLast Trading Day

Futures