Treasury Futures and Options reviews the varied elements of U.S. Treasury futures and options markets, providing practitioners with a full description of the operations and potential of Treasury futures and options. This book is essential for every fixed income trader, investor, and economist that looks at the U.S. Treasury market.
U.S. Treasury futures and options are the world’s largest fixed income markets. They enable investors and traders to trade, risk manage and invest in U.S. government notes or bonds for future delivery. The U.S. government bond market is the most liquid, secure and diverse among international government bond markets. The U.S. government uses the U.S. bond market to finance its maturing debt and expenditures, and with the expansion of U.S. borrowing, these markets have never been so large nor so closely watched around the world.
Treasury Bond Futures and Options is the first standard reference handbook of its kind. It systematically reviews all of the varied elements of these crucial markets, providing practitioners and non-practitioners with a thorough description of the operations and potential of Treasury futures and options. The book presents readers with a full sense of how these gigantic markets function, including elements such as trading execution, risk management, delivery mechanism, market participants and regulatory treatment. It describes the key elements of market design, as well as walking through the trading and hedging opportunities that these markets provide. It is divided into three main sections. The first explains the background and current state of the cash and derivative Treasury markets. The second section focuses on risk management and trading using Treasury futures and options, while the third section looks at related products, key types of trader and governance.
Treasury Bond Futures and Options is essential for every fixed income trader, regulator, financial investor, researcher and economist who looks at the U.S. Treasury market.
1 Treasury Market Development 2 Introducing Cash Treasuries 3 -
Introducing Treasury Futures 4 - Overview of Different Futures and Maturities
5 - Risk Management with Treasury Futures 6 Trading Execution of Treasury
Derivatives 7 Trading Treasury Future Spreads 8 Spreading Treasury
Futures to Other Markets 9 Managing Physical Delivery, Basis Risk and Tails
10 Options on Treasury Futures 11 Invoice Swap Spread Trading 12
Related Products: Yield Futures and Micro Treasuries 13 Market Participants
14 Regulatory Oversight 15 Related Academic Studies 16 The Evolving
Treasury Futures Market 17 The Treasury Markets Path Forward
Owain Johnson is the Global Head of Research and Product Development, CME Group, London, United Kingdom.
Eric Leininger is Head of Financial Research, CME Group, New York, United States.
Jonathan Kronstein is Senior Director of Financial Research, CME Group, Chicago, United States.
Agha Mirza is Global Head of Interest Rates and OTC Products, CME Group, New York, United States.
