There are many investable products in the market, among which treasury bond futures is one kind of financial futures. Simply put, treasury bond futures refer to the treasury bond derivative trading method that determines the buying and selling price in advance through organized trading places and delivers currency and bonds at a specific time in the future. The final delivery date is the third trading day of the last trading day, and the delivery method of physical delivery is adopted.

What are the characteristics of treasury bond futures?

1 Treasury futures trading is debt-free daily settlement system, and there is little physical delivery in general treasury futures trading.

2. Optimize the asset allocation function. The transaction cost of treasury bond futures is low, which can facilitate investors to allocate assets reasonably, thus improving investment income.

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

Treasury bond futures contracts are standardized contracts, which can be said to provide underwriters with a tool to avoid the risks in the treasury bond issuance market. Treasury bond futures trading is a leveraged transaction, and a margin system is implemented.

5. 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.

These characteristics are all related to treasury bond futures, which are playing an increasingly important role in promoting the issuance of treasury bonds, improving the liquidity of spot market, promoting the interconnection of bond markets, and improving the yield curve of treasury bonds reflecting the relationship between market supply and demand. It must be said that treasury bond futures have the functions of price discovery and interest rate risk avoidance, which can promote the issuance of treasury bonds.