Delivery is very common in the futures market. Futures delivery refers to the process that when the contract expires, both parties to the transaction settle the outstanding contract by transferring the ownership of the subject matter contained in the contract or settling the cash difference at the specified settlement price in accordance with the rules and procedures of the futures exchange. However, there are many kinds of futures, such as treasury bonds futures and stock index futures, and the delivery methods of different kinds of futures may be different.

Is treasury bond futures delivered in kind?

Yes, treasury bonds futures are delivered in kind, while stock index futures are not delivered in kind, but in cash. Physical delivery of futures has the advantages of improving hedging efficiency and promoting the liquidity of bond market. The last trading day of treasury bond futures: the second Friday of the contract expiration month; Last delivery date: the third trading day after the last trading day.

Treasury bond futures function:

1 interest rate risk management: in order to hedge the interest rate risk brought by macro-policies and economic development, treasury bonds futures are used to hedge bond portfolios, which are suitable for individuals and institutions holding a large number of bonds, deposits or debts.

2 Bond arbitrage: Use the sensitivity of different bonds to interest rates and the change of basis between bond futures and cash to arbitrage.

3. Indexing investment in bonds: Using treasury bonds futures to build a bond portfolio is often used to adjust the bond ratio of open-end funds at low cost.

4. Adjust the duration of bond portfolio: adjust the duration of bond portfolio by taking advantage of the characteristics of low transaction cost and less capital occupation of treasury bonds futures.

5-share bond arbitrage: using the correlation of stock bond market, hedging arbitrage is carried out with stock index futures and government bond futures.

If you plan to buy treasury bonds futures, you must understand the delivery method and be familiar with the delivery process. The delivery process of treasury bond futures includes the declaration of delivery intention, and the last trading day is the declaration of delivery information, delivery matching and treasury bond delivery.