Micro 10-year note Treasury Yield Futures Contract Specifications

Speculate in big interest rate moves with micro-sized exposure. 

We now offer trading in micro-sized Treasury yield 10-year note futures listed on the CME Group!

Symbol - 10Y
Margin - $264


What are Treasury Yield Futures and how can they be used to speculate on interest rates?

Traditional Treasury futures contracts provide excellent liquidity and efficiency for those looking to speculate or hedge changes in interest rates. However, confusion over how they are quoted and what they represent has worked against attracting new traders into the fold.

The new micro Treasuries listed by the CME Group trade in yield, rather than price. Specifically, the Micro Treasury yield futures track the BrokerTec US Treasury Benchmark which is based on the most recently auctioned security. The elimination of the yield conversion calculation from futures price to yield offers a simplicity capable of attracting traders of all sizes and skill levels to the interest rate futures arena. This is a big step toward leveling the playing field for market participants and improving liquidity. Further, the micro-sized contracts allow strategies that were otherwise only available to those with large trading accounts such as dollar-cost averaging, also known as scaling in and out of trades incrementally.

A trader who believes the 10-year note yield will fall from 1.9% to 1.0% could sell a micro futures contract to act upon a speculative opinion. The expected move represents a profit of about $900 prior to transaction cost and can be employed with a margin requirement of just $264! Of course, an adverse move in the same magnitude would produce a similar loss.

These new micro-sized Treasury securities are cash settled rather than physically delivered. This means traders of these products don’t have to fear the complications and stress of First Notice Day or contract expiration. Instead, any position held to expiration is simply cash settled on the date the held contract ceases to exist. Even though, I would suggest always offsetting and/or rolling futures positions prior to expiration rather than letting it cash settle.

In summary, thanks to the CME Group’s Micro Treasury Futures; trading interest rate futures is now a simpler endeavor with lower to barriers to entry.

If you aren't already a client of our futures brokerage, click here to begin an application.

Futures and Options Trading Booksby Carley Garner

What People are Saying about Our Commodity Trading Books

Choosing a Futures Broker and Brokerage Service

Full-Service or Online Trading?

The decision to trade online or through a full-service commodity broker will undoubtedly make a large impact on your bottom line.

Learn More

A Fair Commission Rate vs. Low Commission

To look at commission rates objectively, we must understand the background of the futures industry and how brokerages accept risk for fees.

Learn More

Choosing a Commodity Brokerage Firm

Deciding on a commodity brokerage firm is a significant decision and shouldn’t be taken lightly. Not all traders and brokers are compatible.

Learn More

Choosing a Futures and Options Broker

Most traders in search of a futures broker are concerned primarily with trading platforms, commission, and quality guidance.

Learn More

The Truth about Futures Commission

The goal of futures trading should be to MAKE money, not SAVE it! Discount commodity brokers cut corners that cost their clients time & money.

Learn More

Commodities via Futures or ETFs?

A key difference to trading commodity futures over ETFs is leverage, but there is more to discuss, such as taxes, market hours, and efficiency.

Learn More