Government bond futures are a derivative instrument in the bond market and a financial product based on standardized bond trading contracts. The trading of public bond futures is a transaction method in which the buyers and sellers of public bond futures agree through the exchange to deliver at an agreed price and quantity on a specific trading day in the future. Unlike spot prices, Treasury bond futures trade in Treasury bond futures contracts. A contract is a public bond sales contract in which the buyer and seller agree to settle and deliver at a certain price on a certain date in the future in accordance with standard specifications. Treasury bond futures contracts are a type of interest rate futures contract. Generally speaking, the price of the asset they represent is only related to the level of interest rates.

The Treasury futures market is a trading place for buying and selling Treasury futures contracts. Participants in the government bond futures market include brokers, dealers, institutional legal entities and natural persons.

Futures trading includes three actions: opening, closing and holding positions.

Opening a position refers to the behavior of market participants to buy or sell futures contracts;

Closing a position refers to buying or selling a bond contract of the same type. The transaction behavior of selling or buying in the opposite direction according to the quantity;

Position refers to the behavior of not closing the position before the delivery of the target government bond. Before signing a purchase and sale contract, both parties to the futures transaction need to deposit a certain margin at a securities firm or exchange in accordance with the prescribed amount to ensure that the transaction can proceed smoothly. For market participants, an important advantage of futures trading is that a small amount of margin can be used to buy and sell a larger number of futures contracts, thereby expanding the market capacity through the leverage of futures trading.

The first is to provide investors with a means of hedging through hedging, which is helpful for the market to discover future changes in future prices, expected interest rates and exchange rates;

Second, Due to its capital amplification effect, the futures market also provides market speculators with the opportunity to obtain high speculative returns;

Third, it can activate the circulation of the public bond market and is conducive to the smooth issuance of public bonds;

Fourth, it can promote the development of financial markets and indirectly accelerate economic growth.