Back
Bond futures
Interest rate futures whose underlying securities consist of bonds, almost invariably government bonds.
(1) Bond futures are long-term interest rate futures that can be used to hedge long-term interest rate risk since there is an inverse relationship between changes in interest rates and prices of underlying bonds.
(2) For example, the Montreal Exchange (Mx) offers ten-year Government of Canada Bond Futures (CGB).
Translations
Synonyms and variations
- Bond future
- Bond futures contract
- CGB
- Government of Canada Bond Futures