Trade 10-year U.S. Treasury Note Futures

What are 10-year U.S. Treasury Note Futures?

10-year U.S. Treasury note futures are a financial instrument based on the future value of U.S. government-issued 10-year Treasury notes. Treasury bond notes are a U.S. debt security issued at regular intervals, have an initial maturity date 10 years into the future, and pay a fixed interest rate return. 

There is an inverse relationship between the price movement of bonds and interest rates: when interest rates are expected to rise, prices will generally move lower; when interest rates are expected to fall, prices will generally move higher.

Why Trade 10-Year U.S. Treasury Note Futures?

Tracking and monitoring 10-year U.S. Treasury notes can be crucial for understanding key market sentiment and expectations regarding economic growth, inflation, and central bank policy. Additional benefits of trading 10-year U.S. Treasury note futures include:

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Direct exposure to speculate on the price movement of 10-year notes and the interest rate yield

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Increased flexibility versus purchasing bonds directly

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Go long or short based on real-time price movement of 10-year notes

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Nearly 24-hour access to highly liquid, cost-effective trading

Trade Micro Treasury Yield Futures to Reduce Financial Commitment

Micro yield futures serve as a cost-effective starting point to trade interest rate yield for bonds and notes. At 1/10th the size of standard contracts, Micro futures are more accessible for traders of all levels, allowing for more precision to fine-tune trade size and reduced margins. Other advantages of trading these smaller contracts include:

  • Highly leveraged markets for more buying power*
  • Start with a smaller account vs. full-size Treasury yield contracts
  • Increased flexibility for better position management

Micro Treasury yield futures contracts provide an ideal entry point for new futures traders to start small and scale up as you become more comfortable in the live markets. 

*Leverage also increases the risk associated with futures trading and only risk capital should be used for trading

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Who Trades 10-Year U.S. Treasury Note Futures?

10-year U.S. Treasury note futures traders can be broken down into three main groups: 

  • Commercial traders typically trade 10-year Treasury note futures to hedge interest rate exposure. For example, large banks that hold a portfolio of mortgages or commercial loans can mitigate their risk to interest rates changes and may take delivery of the actual 10-year notes.  
  • Large professional traders are typically commodity pool operators, proprietary trading firms, institutional investors, and hedge funds. These traders are purely speculating on the price movement of 10-year Treasury note futures and generally do not take delivery. Normally, commercial traders and large speculators make up 90% or more of the daily trading volume in 10-year note futures. 
  • Self-directed retail traders make up the remaining daily trading volume in 10-year U.S. Treasury note futures. Like large professional traders, they are typically speculating only on the price movement of the futures contract.

What Can Affect the price of 10-year u.s. treasury note futures?

Interest rates are the most significant factor in determining the price direction of 10-year U.S. Treasury note futures. Additional drivers that can affect interest rates include:

Inflation Expectations

When investors expect higher inflation, the yield on the 10-year note may increase to compensate for less purchasing power. Similarly, higher yields mean lower note prices.

Federal Reserve Policy

Changes in U.S. monetary policy—like changes to the federal funds rate—can significantly impact expectations for interest rates moving forward.

Domestic Economic Data

Weekly and monthly reports on GDP growth, unemployment, manufacturing output, and other key economic indicators can influence interest rate sentiment.


It is also important to keep an eye on 10-year U.S. Treasury note auctions. Each auction is announced by the U.S. Treasury Department and details the amount of debt to be issued. Large financial institutions then bid based on the yield they are willing to accept. If demand for new 10-year notes is weaker than expected, 10-year note futures may decline in price. For more information, visit Treasury Direct.



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Risks of Trading 10-Year U.S. Treasury Note Futures

The primary risk of trading 10-year U.S. Treasury note futures is that the price will go against the trader’s position. Having a risk management plan that includes stop losses or a trailing stop, along with appropriate trade sizing, can help reduce your financial exposure.

Tips to keep in mind especially for newer futures traders include: 

  • Practice in a futures trading simulator that reflects live market conditions until you prove to yourself that you're comfortable with the market swings. When you start trading with real dollars, trade small to start, and work your way up. 
  • Build a well-defined futures trading plan that includes clear entry and exit criteria, analysis of market conditions, and a schedule for when you are and are not going to trade. 

10-Year U.S. Treasury Note Futures Contracts Specifications

10-year U.S. Treasury note futures are standardized exchange-traded contracts that represent the value of a $100,000 Treasury note. The value for a full 1-point move in the contract is $1,000. 

You can trade 10-year U.S. Treasury note futures on the 24-hour electronic CME Globex system. Treasury 10-year note contracts are deliverable according to the contract specifications. 


Standard 10-year U.S. Treasury Note Futures
SymbolZN

Exchange

CME Globex (CBOT)
Contract point value$100,000 in U.S dollars
Price quotePoints and fractions of points with a basis of 100 points
Minimum price fluctuation1/2 of 1/32 of one point (0.015625 * 100,000 / 100) = $15.625 per contract per-minimum move)
Trading hoursSunday 6:00 pm ET to Friday 5:00 pm ET
Listed contractsQuarterly contracts (Mar., Jun., Sept., Dec.) listed for three consecutive quarters
First notice date^Two trading days after last trading day of the expiring contract
Expiration styleTrading terminates at 1:01 pm ET, seven business days prior to the last business day of the contract month
SettlementDeliverable
Additional Specifications
View all from CME Group

Become a 10-Year U.S. Treasury Note Futures Trader Today

Ready to start trading 10-year U.S. Treasury note futures? NinjaTrader is here to support you. With award-winning features and daily premium market commentary with industry pros, NinjaTrader equips you with the tools you need to embark on your trading journey.

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Frequently Asked Questions About 10-Year U.S. Treasury Note Futures

A U.S. Treasury 10-year note futures contract is a tradable instrument representing one U.S. Treasury 10-year note with a value of $100,000. Like all treasury futures, it has a unique set of contract specifications that are set by the futures exchange.
U.S. Treasury 10-year note futures trading is an agreement between a buyer and seller at a specified price in a contract that will expire on a specific date. Traders can enter and exit positions any time prior to first notice date to avoid delivery of the underlying 10-year note.
U.S. Treasury 10-year note futures offer traders direct market access for speculating on the price movement of 10-year notes, and by proxy the 10-year interest rate yield. Traders can easily go long or short with good liquidity virtually 24 hours a day, offering traders more opportunities, trading flexibility, and lower investment capital required over buying and holding a 10-year note.
U.S. Treasury 10-year note futures are traded on a well-regulated exchange where orders are matched and cleared on a fair and level playing field with full price and order transparency. Traders can place buy and sell orders on the well-establish CME futures exchange through a well-regulated broker like NinjaTrader.
Yes, NinjaTrader is an industry-leading futures broker offering low commissions, low margin rates, and safety of your account funds. With NinjaTrader, you get all the tools and help you need to trade dozens of the most actively traded futures markets in the world including the U.S. Treasury 10-year note futures contracts.
Like every futures contract, the primary risk here is that the price of the U.S. Treasury 10-year note futures will go against the trader’s position. Interest rate news, rising and falling inflation, and other economic factors can all have a significant effect on the price of U.S. Treasury 10-year note futures.
^In any futures market where there is physical delivery, in order to prevent the possibility of physical delivery, it is NinjaTrader’s policy to close all open futures positions one day prior to first notice date or one day prior to last trading day, whichever is earlier.