US 10 Year T-Note Futures (TYc1)


Futures on a 10-Year T-NoteAcontract is a quick and easy way to profit from the difference in price of the 10 Year T-Note between when you buy the contract and when you sell it.

More About US 10 Year T-Note Futures (TYc1)

Continue reading to learn more about:

What is the ticker symbol for US Treasuries?
What happens when the 10-year Treasury goes up?
Are Treasury futures cash settled?
How do you price Treasury futures?
Do Treasury notes pay interest?
Where are Treasury futures traded?


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What is the ticker symbol for US Treasuries?


The ticker for US 10 year treasury futures is TYc1, which can be found on the Bloomberg Terminal or a number of other financial news services. CME trades US 10-year treasury futures, which are a popular way to speculate on longer-term interest rates.


 
 

What happens when the 10-year Treasury goes up?


As the 10-year yield moves higher, many expect mortgage rates to follow. A large part of the yield is determined by the supply and demand of the Treasury market. And if there are more buyers than sellers in the marketplace, then prices will move higher, which will cause bonds to fall. However, economic fundamentals like GDP and inflation also influence prices.

 

Are Treasury futures cash settled?

Yes, Treasury futures are cash settled. The Treasury bond futures contract is the most liquid and widely traded futures contract in the world. T-bond futures contracts represent the most efficient way to invest in, hedge against, or speculate on movements in the 30-year Treasury bond yield.

How do you price Treasury futures?

If you want to buy or sell a Treasury futures contract, the price is comprised of two parts. The first part is quoted in points and 1/100s of a point and is fixed according to the pricing convention specific to each bond maturity. The second part is adjusted for any coupons that have been paid since issuance and any accrued interest in order to better match the price of the underlying bond.
 
  • Do Treasury notes pay interest?

    Treasury notes are a type of marketable U.S. government security that pays fixed interest every six months and then returns the principal at maturity. The T-notes' value depends on prevailing interest rates. A note with a higher coupon rate is more valuable because you receive increased semi-annual payments, while the price of a note with a lower coupon rate will decrease if rates rise because there is less incentive to hold it.
  • Where are Treasury futures traded?

    Treasury futures are traded on an exchange, such as the Chicago Board of Trade (CBOT). Investors buy and sell contracts to speculate on changes in the price or to hedge their Treasury bond holdings. A Treasury futures contract is a legally binding agreement specifying that a certain quantity of bonds will be delivered at a future maturity date at a specific price.