What is the best way to trade interest rates? Futures Markets.
In futures markets, the US government borrows money primarily by issuing bonds and notes or fixed terms. 2 years, five years, ten years, and 30 years. US Treasury bonds trade around the clock leading to constant price fluctuations.
Trade Futures for Less!! Keep your futures trading costs low through deep discount commissions & low margins. Experience NinjaTrader’s award-winning futures brokerage services and personal support. Click here to check out NinjaTrader!
In general, bond prices move in inverse proportions to interest rates or yields. In a rising rate environment, bondholders will witness their principle value erode. In a declining rate environment, the market value of their bonds will increase, so if yields rise, prices fall; if yields fall, then prices rise. US Treasury futures and options are available for each treasury benchmark: 2 years, five years, ten years, and 30 years. Additionally, CME Group offers ultra ten-year notes and ultra t bond futures, which provide greater precision for trading the ten-year and 30-year maturity points on the yield curve. US Treasury Futures are listed on the March, June, September, and December orderly cycles. Traders can use interest rates futures, and options that manage exposure to government bonds and money market securities in a safe capital-efficient way. Access to a full range of benchmark products, Eurodollars, Fed Funds, SOFR, US Treasuries across the US dollar yield curve from 1 week to 30 years.
Past performance is not indicative of future results.