What does the rise in treasury bond futures mean?
Treasury bond futures prices are positively correlated with treasury bond prices, and rising treasury bond futures prices means rising treasury bond prices. Similarly, the expected yield of national debt has declined, and the interest rate of national debt has also declined. The rise and fall of the national debt price is that the rise and fall of the face value price has nothing to do with the national debt interest rate, and the national debt price is inversely proportional to the interest rate. The rise in the price of national debt shows that the market is in short supply, and the interest rate of natural national debt is low.
What is the impact of the rise in treasury bond futures on the stock market?
The surge in treasury bond futures means releasing liquidity, which is a good thing. However, treasury bond futures and treasury bond prices are two different things. The logic of bond investment is that long-term interest rates fall and returns rise.
The listing of treasury bonds futures will not affect the policy expectation and basic trend of the stock market, and the listed treasury bonds futures have little influence on the normal operation and trend of the stock market. From the short-term market observation, the trend of futures market leads to the rise or fall of stock market. In the long run, the rise and fall of stocks mainly depends on the market index.
Treasury bond futures is a kind of financial futures and an advanced financial derivative tool, which is produced to meet the needs of investors to avoid interest rate risks. Judging from the price fluctuation characteristics and product risk attributes of treasury bonds futures, the price fluctuation of treasury bonds futures is small, which is more suitable for institutional investors to participate.