Central banks like the U.S. Federal Reserve help shape short- and long-term economic growth by restricting or expanding the supply of money circulating in an economy. They do this through the use of debt obligations called treasuries -- such as bills, notes and bonds – in which the government borrows money from the holder for a specified period of time. Because treasuries are viewed as being among safest of all investments, they can be in high demand.

Treasury futures offer one way to gain exposure without trading the individual securities themselves. Learn the basics behind trading Treasury futures, from the delivery process, contract specifications, key concepts like basis and Cheapest to Deliver (CTD) and more. Discover the different ways these contracts are used, from price discovery to risk management to profit speculation, and how they are intertwined with other financial markets like stocks and currencies. 

Short Term Interest Rates (STIRs) play an important role in the global economy. STIRs represent one of the world’s largest interest rate markets. Take this course to get a better understanding of how the STIR market works, including how market participants worldwide manage risk and express views on this market by trading liquid Eurodollar and similar futures and options. We’ll cover how the contracts are built and the important concepts you need to know, like what basis point values (BPV), convexity bias and implied forward rates mean. Explore the different ways to trade these contracts, from outrights to spreads to strips, and the benefits of trading futures as part of your portfolio.

Course Curriculum

  • 1

    US Treasury Foundational Concepts

    • US Treasury Futures - Foundational Concepts

    • US Treasury Futures - Practical Applications
  • 2

    Introduction to Treasuries

    • Treasury Delivery Process

    • Treasuries Contract Specifications

    • Basics of Treasury Basis

    • Basics of Treasury Basis

    • Treasury CTDs

    • Measuring Risk in Treasuries

    • Calculating US Treasury Pricing

    • Hedging and Risk Management

    • Intermarket Spreads on the Yield Curve
  • 3

    Introduction to Eurodollars

    • Introduction to LIBOR and Eurodollars

    • IMM Price and Date

    • Eurodollar Settlement Process

    • Basis Point Value (BPV)

    • Convexity Bias

    • Intramarket Spreads (Calendar Spreads)

    • Eurodollar Strips

    • Eurodollar Futures and Forward Rate Market

    • Packs and Bundles
  • 4

    Important Topics

    • Interest Rates, Bonds & Yields, and How They Affect Currency Markets

    • Fixed Income Fundamentals - Fed Fund Futures

    • Trading the US Treasury Yield Curve

    • Intermarket Relationships in Interest Rates - Understanding Opportunities for Trading the Yield Curve
  • 5

    Reading Material

    • Calculating the Dollar Value of a Basis Point

    • CME Rates Introduction

    • Eurodollar Futures

    • Inter-Commodity Spreads

    • CME Group - Interest Rate Overview - STIR Futures

    • US Treasury Futures 1.0 - Foundational Concepts

    • US Treasury Futures 2.0 - Practical Applications
  • 6

    Reference Material

    • CME Yield Curve Trades

    • CME Understanding Treasury Futures

    • CME Understanding Eurodollar Futures

    • CME Understanding Packs & Bundles

    • CME Risk Management for Fixed Income Asset Managers

    • US Treasury Futures - Delivery Process

    • Duration & Convexity - Vanguard

    • Duration 1

    • Duration 2

    • The Futures Bond Basis - Part I

    • The Futures Bond Basis - Part II
  • 7

    eBooks

    • Trading STIR Futures

    • An Introduction to Bond Markets - Moorad Choudhary

    • The Handbook of Fixed Income Securities
  • 8

    Quiz

    • Quiz - Fixed Income 2
  • 9

    Class Presentation

    • Class Presentation

About Trading Institute

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Trading Institute

Trading Institute is a professional training institute set up with an objective to bridge the skills gap between academia and theindustry by offering industry relevant training and certifications andempowering young and dynamic individuals with skills required topursue careers in the areas of capital markets and financialservices. Our mission is to equip aspiring financial markets learnerswith the right education and training they need to pursue a careerwith leading financial institutions or become an independent or aprofessional trader and a sound investor.