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News on Treasuries From the CME Group

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.

➜ View: Issuance & deliverable basket projections

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.

➜ Read: 30 Years of the Two-Year Note

Dynamic circuit breakers coming to Treasury futures July 27*

Please see the SER below for more details.

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