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# (ZB) 30 year T Bond

Discussion in 'Financial Futures' started by hetrazom, Feb 14, 2018.

1. ### southall

ZN and ZF could be 0.01 ticks.
But ZB depth is too shallow for 0.01 tick increment.
About 10 years ago they changed ZB from 1/32 ticks to 1/64 ticks but they had to revert back after a year to 1/32 because each level was too thin.
There was not a multi tick wide spread as you might think, but each 1/64 level was populated with about 60 contracts. Instead of several hundred contracts when the tick size is 1/32.
Basically liquidty/depth shrank because the Market Makers and scalpers didn't like the smaller spread.

Last edited: Feb 15, 2018
#11     Feb 15, 2018
2. ### truetype

How many on ET trade >60 bonds at a clip? Anyway, 1/(2^n) ticks are an accounting nuisance. Bunds trade fine in 0.01s.

#12     Feb 15, 2018
3. ### maxinger

T bond, notes, corn, soya, wheat, cattle, hog futures all use non decimal stuff.
The exchange chief should have used decimal places right from the start.

We have to live with the non decimal stuff.

#13     Feb 15, 2018
4. ### comagnum

The treasury bond pricing scheme makes getting Excel functions to work a real pain!

#14     Feb 16, 2018
5. ### piezoe

But admittedly you'd have to be a fairly dimwitted American not to be able to divide, multiply, add and subtract by ten in your head. Whereas mental arithmetic in 32nds or 64ths, unless you are a professional carpenter, is not so intuitive. Let's just decimalize everything and get on with it. Or would you rather we adopted a number system in base 32 instead of base 10? That's another way to go to make arithmetic in 32nds easier.

#15     Feb 28, 2018
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