futures contracts based on financial instruments such as bank bills of exchange or government bonds, which allow traders and investors to take out protection against future movements in interest rates.
a legal commitment to sell financial instruments at a future price and date
Futures contracts traded on long-term and short-term financial instruments: U.S. Treasury bills and bonds and Eurodollar Time Deposits. More recently, futures contracts have developed for German, Italian, and Japanese government bonds, to name a few.
A futures contract that has a debt instrument as underlying security. See futures.
Futures contracts traded on commodities such as GNMA's, issuances of the U.S. Treasury, or commercial paper, the value of which is determined by interest rates and current yields. Currency is excluded from this category because interest rates play a much smaller role in the determination of currency values. Prices for interest rate futures generally move inversely in relation to interest rates. For example, when interest rates go up, the price on a financial instrument issued at a lower interest rate will have to be lowered to increase its yield to current levels.
Futures contracts traded on fixed income securities such as US Treasury issues, or based on the levels of specified interest rates such as LIBOR (London Interbank Offered Rate). Currency is excluded from this category, even though interest rates are a factor in currency values.
A transferable agreement to make or take delivery of a fixed-interest security at a specific time, under terms and conditions established by a market upon which futures trading is conducted.
Futures contracts traded on fixed income securities such as G.N.M.A.s, U.S. Treasury issues, or CDS. Currency is excluded from this category, even though interest rates are a factor in currency values.
