Treasury bond futures are also interest rate futures. The fluctuation of treasury bond futures price reflects some conditions of monetary environment, and can also provide some reference for investment activities. So what does the decline in treasury bond futures mean?

What does the decline in treasury bond futures mean?

There are three kinds of treasury bonds futures in China: 2-year, 5-year and 10-year. Do these three kinds of treasury bonds futures show different situations?

1 When the decline of three kinds of treasury bonds futures is relatively consistent, it actually shows that the yield of treasury bonds has increased. It also reflects the tightening of the monetary environment, because in a tight environment, the overall interest rate of the market will rise. At this time, the demand for fixed coupon rate's national debt will decrease, the price of national debt will fall, and the yield of national debt will also rise.

2 when the decline is obviously inconsistent. Especially when the decline of long-term treasury bonds futures is lower than that of short-term treasury bonds futures, resulting in the yield of short-term treasury bonds being higher than that of long-term treasury bonds, the interest rate will be upside down, which shows that the financial risk is relatively large in the short term.

The above is what the decline of treasury bond futures means under different circumstances, and I hope it will help everyone.