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CME Group, the world's largest and most diverse derivatives exchange, today announced plans to offer 3-Year U.S. Treasury Note futures beginning Monday, March 23, 2009. This contract is listed with, and subject to, the rules and regulations of the CBOT.
"This new futures contract is an extension of our benchmark U.S. Treasury complex and in response to strong customer demand following the recent reinstatement of 3-Year Treasury notes into the monthly auction cycle," said Robin Ross, CME Group Managing Director of Interest Rate Products. "The new contract will provide an additional tool for basis trading, duration management, and both yield curve and credit spread trading."
The 3-Year Treasury Note futures will be comparable to the existing CME Group Treasury futures with similar contract specifications. However, the 3-Year Note futures are expected to be more germane as a pricing benchmark for the three-year sector of the yield curve than either 2-Year Note or 5-Year Note futures. The remaining term to maturity between two-and-three-quarters and three years for issues to be eligible for delivery will distinguish the 3-Year Treasury Note futures from these other Treasury note futures.
The 3-Year Treasury Notes will trade via both CME Globex and open outcry. In addition, CME Group will offer pre-defined, implied inter-commodity spreads on CME Globex for 3-Year Treasury Note futures versus other existing Treasury futures contracts. Options on the futures will not be offered at this time.
For more information about the 3-Year Treasury Note futures contract and CME Group's other interest rate products, click here.
Video content from Peter Barker, Director of Interest Rate Products, can be found here: http://accordent.powerstream.net/008/00102/090224pr3y/msh.html
