Coming Soon | Micro Treasury Yield Futures

Now in full copycat mode, to retain supreme power and fend off any encroachment from the likes of the Small Exchange and new entrant FairX, the CME announced today Micro Treasury Yield futures. Like Micro Crude Oil (MCL) coming in July, a smaller, standardized interest rate product was much needed and is likely to see the same success as the Micro stock indices and, more recently, Micro Bitcoin (MBT).

For those very few futures traders that trade the current note and bond futures, the Micro Treasury Yields will take some getting used to since, true to the name, they’ll trade in yield and not price. This means that the inverse relationships are no longer a factor.  Longs get paid when rates go higher.  Shorts win when rates decline.

Another very welcome aspect of these new yield based products is the standardization versus the insanity of the quoting and price-per-tick in the notes and bond futures. Micro Treasury Yield products will be $10 per basis point, meaning it’ll be $1.00 per tick for all the durations, which will include the 2Y, 5Y, 10Y and 30Y terms.

The video below from the CME launch page explains the contract specifications, settlement, and other key features.

Commodity Futures Trading Commission. Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.