How to play the 1 month?

Discussion in 'Financial Futures' started by kxvid, Oct 21, 2008.

  1. kxvid


    I remember not that long ago I saw that the 1 month t bill was yielding 0.01%. I heard also that it briefly dipped negative for the first time that has happened since the great depression.

    Now its yielding around 0.25%. I know there are 10 yr futures, etc. But are there any leveraged ways to trade the 1 month? Sorry I don't know much about bond trading.
  2. MTE


  3. kxvid


    Thanks for the link. You know the margin on those? 3 month seems to track 1 month pretty close so no real need for 1 month futures. Now I'm wondering how much you could've have made if you got in at 0.02% per contract versus today's yield of 1.02. A killing for sure.
  4. MTE


    Just click on "performance bonds" in the grey...ish box (in the middle of the screen which has the contract description) on that link, then click on "outright" next to "CME Interest Rate Futures" and then scroll down to 13-week T-bill.

    Initial is $405, maintenance is $300.
  5. MGJ


    You may find it significant, that T-Bill futures do not appear on the daily volume report. Their trading activity is so light that the exchange doesn't bother to tabulate it. Attached is Friday's volume report, have a look. URL =
  6. kxvid


    I clicked and got the figures of $810 initial, $610 maintenance for overnight.

    point = .005 = $12.50 or
    .01% = $25
    today's yield = 1.10%

    If you got in with one contract at 0.01%, you would have $2725 in profit today. Not too bad especially when you consider that there is limited downside risk with that trade since the government will issue more bonds to stabilize prices.