Related products

Chapter 12 examines the evolution of related products in the U.S. Treasury futures ecosystem, focusing on Yield futures and Micro Treasury futures. Yield futures, launched in 2023, are designed to provide direct trading and hedging of benchmark Treasury yields and are quoted in yield terms with fixed DV01, cash settlement, and are linked to the BrokerTec U.S. Treasury Benchmark Yield Index. This structure allows for transparent, rate-specific exposure that is especially useful for macro traders, fixed income managers, and corporate treasurers. Micro Treasury futures, introduced in 2024, offer smaller, accessible contract sizes at one-tenth the scale of standard Ultra Treasury futures. These cash-settled contracts enable flexible risk management, finer position sizing, and broader market participation, making precise interest rate strategies and curve trades more available to a wider range of investors.