1, economic development. The quality of economy will directly affect the national debt market. When the economy is in the process of decline, the market interest rate will drop, the funds will turn to national debt investment, and the price of national debt will also rise. On the contrary, the upward trend of the economy may lead to an increase in the interest rate of funds, leading to a decline in national debt.

2. Market interest rate level. Bonds are typical interest rate commodities, and the interest rate level in the money market is closely related to the rise and fall of bond prices. Treasury bond futures prices are inversely proportional to interest rates. When the market interest rate rises, the credit is tight, the funds for investing in government bonds decrease, and the market price of government bonds falls. When the market interest rate drops and the credit is loose, the capital flowing into the national debt market increases, the demand increases and the national debt price rises.

3. Price level. When prices rise, people will invest their money in real estate or other commodities with stronger value preservation function in order to preserve their value, and the demand for national debt will decrease, which will lead to the decline of national debt prices.

In addition, rising prices mean accelerating inflation, and the central bank will take measures such as raising interest rates to stabilize prices. In this way, with the increase of interest, the market price of national debt will decrease. On the contrary, when prices fall, especially when there are signs of deflation, interest will fall, and the yield of government bonds will fall, leading to an increase in the price of government bonds.

Extended data:

Basic features:

1. Treasury futures trading does not involve the transfer of bond ownership, but only the risk of price changes related to this ownership.

Treasury bond futures trading must be conducted at designated trading places. The futures trading market aims at opening and liberalization, and OTC and private hedging are prohibited.

3. All treasury bond futures contracts are standardized contracts. Treasury bond futures trading is a leveraged transaction, and a margin system is implemented.

4. Treasury bond futures trading shall be subject to the debt-free day settlement system.

Generally speaking, physical delivery is not common in treasury bond futures trading.

References:

Baidu encyclopedia-treasury bond futures