Why do bond futures contracts represent the ups and downs of the bond market?
First of all, the national debt is the bond with the highest credit rating in China, and it is almost impossible to default. The interest rate of national debt is also called risk-free interest rate. Then futures have the function of price discovery, and the futures contract with treasury bonds as the target can best represent the actual market price of treasury bonds. Therefore, everyone regards treasury bond futures contracts as the overall situation of the bond market.