TBond futures represent the 30-year maturity on interest rates, which help set rates on home mortgages, among other things. Originally launched in 1977, this contract allows individual traders, banks and institutions to hedge long-term risk as well as profit from shifts in the interest rate markets. The Federal Reserve Bank may have a stronger impact on shorter term rates with its policy moves, but that ripples down to the 30-year bonds as well. Classic T-bond futures carry a remaining maturity of at least 15 years but not more than 25 years, which differ from Ultra T-bonds, which have a remaining maturity of at least 25 years but not more than 30 years. 30-year Treasury bond futures are among the most liquid and deep interest rate markets in the world, allowing traders efficient ways to enter and exit trades. The contracts are also available to trade virtually 24-hours per day.
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