Recently, treasury bond futures continued to fall. The main contract in 10 fell by 0.08%, the main contract in 5 years fell by 0.34%, and the contract in 2 years fell by 0. 17%. It is very distressing for investors in treasury bonds futures. In fact, the trend of treasury bond futures can not be separated from the form of market economy, and the economy has not yet gone up, so investors holding treasury bond futures can wait and see, and investors who are in urgent need of money can choose to deliver.

How should treasury bond futures be delivered?

Treasury bond futures refer to futures products with treasury bonds issued by sovereign countries as the subject of futures contracts. At present, the active varieties of treasury bonds futures in the world are mainly medium and long-term treasury bonds futures, which are generally delivered in kind.

Under this delivery mode, if the seller of the treasury bond futures contract does not close the position before the contract expires, it is theoretically necessary to use the nominal standard coupon to fulfill the contract. The so-called nominal standard coupons refer to imaginary coupons with standardized and fixed term in coupon rate. The biggest function of nominal standard bond design is to expand the scope of deliverable national debt, enhance the anti-manipulation ability of price, and reduce the risk of forced liquidation during delivery.

However, the nominal standard bonds do not exist in reality, so the exchange will stipulate that a basket of treasury bonds that exist in reality and meet a certain period of time can be delivered. For example, the deliverable bonds of China's 5-year treasury bond futures and 10-year treasury bond futures are book-entry interest-bearing treasury bonds with the remaining maturity of 4-5.25 years and 6.5- 10.25 years on the first day of the contract expiration month, respectively.

To understand the delivery of treasury bonds futures, we must first understand the concept of conversion factor. Treasury futures are delivered by a variety of bonds in a package of deliverable treasury bonds. When the contract expires for physical delivery, the deliverable treasury bonds are a series of qualified treasury bonds with different remaining maturities and different coupon rate.

Because the coupon rate is different from the remaining maturity, it is necessary to determine the conversion ratio between various deliverable bonds and nominal standard bonds, which is commonly called conversion coefficient. At present, the national debt futures in China rose by 1 1.6%, which is still in good shape.