Long hedging of interest rate futures refers to the strategy that investors buy interest rate futures contracts in order to avoid spending more money on bonds in the future when they estimate that interest rates may fall in the future, that is, bond prices are on the rise.

Interest rate futures are medium-term, long-term and short-term deliverable financial vouchers of trading objects, and they are financial futures based on interest-bearing securities. In fact, it is a short-term investment with a fixed term and a standard transaction amount in the trading market, and it is a forward contract for money market and capital market instruments. Like other futures, interest rate futures are also subject to legal constraints. Through open market bidding, buyers and sellers agree to deliver a certain amount of securities at an agreed interest rate on a specified date in the future. The market price of these securities is deeply influenced by the fluctuation of market interest rate. If the interest rate rises, its market price will fall. If the interest rate falls, its market price will rise.

There are many factors that affect the interest rate level, but the main factors are: the government's fiscal policy, monetary policy, inflation, national production and income, and national demand for cars and houses, all of which will affect the interest rate trend. Interest rate fluctuation makes both borrowers and borrowers in financial markets face interest rate risk. In order to avoid or reduce interest rate risk, interest rate futures came into being. Interest rate futures are different from forward interest rates. The latter's contract transactions are limited to the banking system and do not involve exchanges, so there is no unified transaction supervision. Moreover, the transaction object is a currency with a specific amount and interest-bearing period.

Interest rate futures contract was first introduced by Chicago Board of Trade on June 1975, and interest rate futures trading has developed rapidly since then. Although interest rate futures came into being more than three years later than foreign exchange futures, its development speed is much faster and its application scope is far wider than foreign exchange futures. In countries and regions where futures trading is relatively developed, interest rate futures have already surpassed agricultural futures and become a category with the largest trading volume. In the United States, the trading volume of interest rate futures has even accounted for more than half of the total futures trading.