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What Are Treasury Futures? To go long a Treasury futures contract is to agree to take delivery of the underlying securities at the price at which you went long adjusted for differences between various deliverable bonds.
Because Treasury futures like other futures contracts go up and down with their underlying assets, you would go long Treasury futures for the same reason you would buy the underlying Treasuries: You expect the underlying Treasuries to go up in price. At their most basic, treasury notes and government bonds are debt investments that have regular coupon payments to their holder over a fixed interval with a fixed interest rate.
This is why bond prices and interest rates are negatively correlated.
year Treasury Bond Futures | CFFEX
Another result of this relationship is that treasury futures contracts are often used as way for traders to anticipate either a rise or fall in interest rates. This is why the recent interventions and hawkish signals from the federal reserve have driven bond prices down while yields have risen. Having an indication of where interest rates are headed is critical to forming a thesis on the possible direction of bond prices.