Trade U.S. Treasury 30-Year Bond Futures

What are U.S. Treasury 30-year Bond Futures?

U.S. Treasury 30-year bond futures are a financial instrument based on the future value of U.S. government issued 30-year Treasury bonds. Treasury bonds are a U.S. debt security issued at regular intervals that have an initial maturity date 30 years into the future and pay a fixed interest rate return.

There's an inverse relationship to the price movement of bonds versus actual interest rate yields. In general, when interest rates are expected to rise, bond futures prices will move lower, and when interest rates are expected to fall, bond futures prices will move higher. It's important to note that bond prices can drive many other futures and commodity market prices. Strong bond prices can move the U.S dollar lower, driving commodity prices higher, and weak bond prices can push the U.S. dollar higher, causing commodity prices to fall.

Why Trade U.S. Treasury 30-Year Bond Futures?

U.S. Treasury 30-year bond futures are a critical tool for traders looking to manage interest rate risk. Tracking and monitoring U.S. Treasury 30-year bonds can be crucial for understanding key market sentiment and expectations regarding U.S. economic growth, inflation, and central bank policy. Advantages of trading 30-year bond futures include:

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Direct exposure to speculate on the price movement and interest rate yield of 30-year notes

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Increased flexibility versus purchasing bonds directly

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Easily go long or short based on the real-time price movement of 30-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

Who Trades U.S. Treasury 30-Year Bond Futures?

U.S. Treasury 30-year bond futures traders can be broken down into three main groups:  

  • Commercial traders typically trade 30-year bond futures to hedge long-term interest rate exposure. For example, large banks that hold a portfolio of mortgages or commercial loans can mitigate their risk to changes in interest rates and may also take delivery of the actual 30-year bonds.
  • Large professional traders are typically commodity pool operators, proprietary trading firms, institutional investors, and hedge funds. These traders are generally speculating on the price movement of 30-year bond futures and do not take delivery. Normally, commercial traders and large speculators make up 90% or more of the daily trading volume in 30-year bond futures.
  • Self-directed retail traders make up the remaining daily trading volume in U.S. Treasury 30-year bond futures, and like large professional traders, are typically speculating only on the price movement of the futures contract.

What Can Affect The Price Of U.S. Treasury 30-Year Bond Futures?

Interest rates are the most significant factor in determining the price direction of U.S. Treasury 30-year bond futures. Key drivers that can affect interest rates include:

Inflation Expectations

When investors expect higher inflation, the prices on 30-year bond may decline to compensate for less purchasing power. Similarly, lower bond prices will move yields higher to help offset inflation.

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. Traders should monitor FOMC meetings and related news releases.

Domestic Economic Data

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


It's also important to keep an eye on 30-year bond auctions. Each auction is announced by the U.S. Treasury department and details the amount of debt to be issued. Large financial institutions will then bid based on the yield they are willing to accept. If demand for new 30-year bonds is weaker than expected, 30-year bond futures may decline in price. For more information visit Treasury Direct.



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Risks of Trading U.S. Treasury 30-Year Bond Futures

The primary risk of trading U.S. Treasury 30-year bond futures is that the price of the future will go against the trader’s position. Using appropriate trade sizing for your account size (trading capital) and having a robust risk management plan in place that includes stop loss orders or a trailing stop will go a long way to helping reduce large losses.

If you’re a new futures trader, consider these tips:

  • Research the fundamentals of trading futures, understand contract specifications, and have a detailed and tested futures trading plan in place.
  • Test your trading plan in a futures trading simulator that reflects live market conditions until you feel confident enough to trade with real dollars. Trade small to start and work your way up.

30-Year Bond Futures Contracts Specifications

U.S. Treasury 30-year bond futures are standardized exchange-traded contracts that represent the value of a $100,000 Treasury bond. The value for a full 1-point move in the contract is $1,000 per contract or $31.25 per each 1/32 price move.

Each futures contract is an agreement between a buyer and seller, has a set price determined when the position is entered, and expires on a set future date. Retail traders typically buy and sell U.S. Treasury 30-year bond futures contracts to speculate if the price will go up or down. These contracts are deliverable according to the contract specifications set by the exchange.

Traders can place trades for the U.S. Treasury 30-year bond futures on the 24-hour electronic CME Globex system.


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

Exchange

CME Globex (CBOT)
Contract point value$100,000 in U.S dollars
Price quotePoints and fractions of points with par on the basis of 100 points
Minimum price fluctuation1/4 of 1/32 of one point (0.0078125 * 100,000 / 100) = $7.8125 per contract per-minimum move)
Trading hoursSunday 6:00 pm ET to Friday 5:00 pm ET
Listed contractsQuarterly contracts (Mar, Jun, Sep, Dec) listed for 3 consecutive quarters
First notice date^Last trading day in the prior to the contract month
Expiration styleTrading terminates at 1:01 pm ET, 7 business days prior to the last business day of the contract month
SettlementDeliverable
Additional Specifications
View all from CME Group

Become a 30-Year Bond Futures Trader Today

Ready to start trading U.S. Treasury 30-year bond 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 30-Year Bond Futures

A U.S. Treasury 30-year bond futures contract is a tradable instrument representing one U.S. Treasury 30-year bond with a contract value of $100,000. Like all futures, it has a unique set of contract specifications that are set by the CME Group futures exchange.
U.S. Treasury 30-year bond 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 a position any time prior to first notice date but must close any open positions two days prior to first notice date to avoid delivery of the underlying 30-year bond.
U.S. Treasury 30-year bond futures offer traders direct market access for speculating on the price movement of 30-year bonds, and by proxy the 30-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 30-year bond.
U.S. Treasury 30-year bond 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-established CME futures exchange through a well-regulated broker like NinjaTrader.
Yes, NinjaTrader is a well-established 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 30-year bond futures contracts.
Like every futures contract, the primary risk here is that the price of the U.S. Treasury 30-year bond 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 30-year bond futures.
The yield curve is a graphic representation that shows the relationship and differences between the interest rate yields of different treasury maturity dates across key debt securities issued by the U.S. Federal Reserve Bank, typically using the 2-year, 5-year, 10-year, and 30-year government issued bonds and notes.
No, a bond futures trader does not pay or receive interest on the underlying bonds directly. The actual interest payments associated with Treasury bonds are only received by the holder of the bond itself. If you own a Treasury bond, you receive interest payments typically every six months until the bond matures or is sold.
^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.