This one is for all our DOM MasterClass Students and others interested in the interest rate markets.
The CME have just announced a series of new rate contracts.
The new contacts are quoted in yield, not the usual price format. That alone is interesting and takes a small complexity out of the trading process.
And hot of off the heels of heels of the popular micro equity contracts, these ones will also be micro sized.
There are 2yr, 5yr, 10yr and 30yr contract each with a $1 tick size, being 1/10th of a basis point. That makes a DV01 of $10, compares with the current Ultra Bond $345.
Like the micro equity contracts, that means good potential to trade spreads or simply scalp the long end without the potential bottom line volatility.
They launch mid-August, and we will look at them more then. Hopefully they will be something we will add to the trading kit.
If you are new to, or rusty on, Treasury futures, please check out my other podcasts.
DOM MasterClass Specials: https://masterclasstrader.com/specials/
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Stuff I use for trading:
Sierra Charts and TradingView.
Seasonalgo.com for seasonal data (masterclasstrader.com users receive 20% off).
Various web based crypto platforms and news channels.
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Music: Various tracks from Kevin MacLeod (incompetech.com). Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/. Plus Streambeats royalty free on Spotify.
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