Treasury bill is a kind of government bond issued by the national financial organ to make up for the imbalance of national treasury revenue and expenditure. Because the debtor of the national debt is the country, its repayment guarantee is the national fiscal revenue, and there is almost no risk of credit default, so it is the least risky credit tool in the financial market.

Treasury bond futures refers to the derivative trading method of treasury bonds that determines the buying and selling prices in advance through organized trading places and delivers currencies and bonds at a specific time in the future. Treasury bond futures is a kind of financial futures and an advanced financial derivative. It came into being against the background of the instability of American financial market in 1970s, in order to meet the needs of investors to avoid interest rate risk.

Futures trading is a complex trading method, which has the following main characteristics different from spot trading:

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

2. Treasury bond futures trading must be conducted at the designated trading place. 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. Debt-free treasury bonds futures trading shall be subject to the daily settlement system.

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