Micro Bund Future?

Discussion in 'Fixed Income' started by Anlits, Aug 21, 2022.

  1. Anlits

    Anlits

    I have not read or heard anything about a micro bund future but was wondering if anyone here had.

    Given the ranges over the last few months and with eurozone rates going higher over the next year at least does anyone think that this would be a good addition to the Eurex micro suite.
     
  2. DevBru

    DevBru

    Wouldn't be enough volume.

    There is barely any volume in the US micro 10 year and 30 year futures.
     
    MarkBrown and SunTrader like this.
  3. Anlits

    Anlits

    I know the US yield micros have been disappointing but I was thinking more of a micro bund future, maybe €1 a tick.

    The bund has 100 plus tick ranges every day the 10yr doesn't have the volatility especially on the US session and in the overnight is 7 ticks wide, it really stands no chance.

    The micro dax started badly and now is pretty decent.
     
  4. Repoguy

    Repoguy

    I've been trading UST micros from the start last year. While I do wish they had more flows overall I think that the complex has been growing and generating increasing numbers of users.

    Open interest has been increasing and monthly calendar rolls have been much more active.

    I do trade the complex daily as one of my core strategies.

    I did not realize bund micro's traded on Eurex will have to look at spread opportunities vs the UST micro's

    Thanks for the idea !
     
  5. MrMuppet

    MrMuppet

    Look...interest rate futures are not for gamblers. They're actually a necessity for institutions that have interest rate exposure and these do the most amount of volume in these instruments.

    Nobody will ever trade micros because why would you trade 100 micros to cover 1m of interest rate risk when you get the hedge done for one tenth of the fees?

    Retail gamblers are into equities. Micros make much more sense there...interest rates? Not so much
     
    Gambit likes this.
  6. maxinger

    maxinger


    many traders / investors are not interested in trading mini / micro / nano things.
    that's why some mini / micro / nano contracts volume could be very low.

    even the small traders are not interested in trading
    mini / micro copper futures
    mini / micro Nikkei index futures
    mini / micro CAC40 index futures
    .....
    They prefer to trade the big size contracts.
     
  7. Anlits

    Anlits

    manytraders / investors are not interested in trading mini / micro / nano things.
    that's why some mini / micro / nano contracts volume could be very low.

    That's not true, it's about the product, the micro ES and NQ have been a spectacular success.

    Now bund futures have 100-200 tick ranges regularly it offers possibilities to people that gives them the choice to make.