ATFX: Is treasury bond bond futures physical delivery, away from black platforms

Delivery onfuturesIt is very common in the market. The delivery in futures refers to the process of closing the open position contract at maturity by transferring the ownership of the subject matter contained in the contract or settling the cash difference according to the specified settlement price according to the rules and procedures of the futures exchange when the contract expires. However, there are many types of futures, such as treasury bond bond futuresstock market indexFutures may have different delivery methods for different types of futures.

Is treasury bond bond futures physical delivery?

Yes, treasury bond futures adopt the method of physical delivery. Stock index futures are not physical delivery, but cash delivery. Physical delivery of futures has the advantages of improving risk avoidance efficiency and promoting the liquidity of the bond market. The last trading day of treasury bond bond futures: the second Friday of the contract expiration month;Final delivery date: The third trading day after the final trading day.

Treasury bond futures function:

【1】Interest rate risk management: in order to hedge the interest rate risk brought by macro policies and economic development, treasury bond futures are used to hedge the bond portfolio, which is applicable to individuals and institutions holding a large number of bonds, deposits or debts.

【2】Bond arbitrage: Using the sensitivity of different bonds to interest rates and the basis changes between bond futures to arbitrage.

【3】Indexing investment of bonds: use treasury bond futures to construct bond investment portfolio, which is often used for open-end funds to adjust the proportion of bonds at low cost.

【4】Adjust the duration of the bond portfolio: adjust the duration of the bond portfolio with low transaction costs and low capital occupation of treasury bond bond futures.

【5】Stock bond arbitrage: use the correlation of stock bond market to hedge arbitrage with stock index futures and treasury bond futures.

If you plan to buy treasury bond bond futures, you must understand their delivery methods. Furthermore, you must be familiar with the delivery process. The treasury bond bond futures delivery process includes declaration of delivery intention, and the final trading day includes declaration of delivery information, delivery matching and treasury bond delivery.