Record 3-year issuance emphasizes need for an efficient hedging tool
With 3-year exposure expected to rise considerably in the quarters ahead, enhanced 3-Year Note futures have been met with strong client interest.
June’s 3-year note auction was the largest ever ($44B) and saw solid demand (2.55 bid-to-cover was the third highest in the last 12 months).
3-year auctions are expected to increase by $2B per month through year-end.
When paired with the addition of aging 7-year notes, the 3-Year’s deliverable basket could increase to over $500B for the Mar2021 contract.
2-Year Note futures celebrate 30th anniversary
As one of the world's most actively traded futures contracts, the 2-Year Note has become a flagship for risk management at the short-end of the Treasury curve. Its success was not immediate, though. It took two listings and several years for it to find its place as a key part of Treasury markets.
Dynamic circuit breakers coming to Treasury futures July 27*
Please see the SER below for more details.