Finally, its about time! Soverign Bond Trading from the CME!

So, directional trading on the bonds of France, Germany, Italy, Netherlands, UK and US?



Key features and benefits of the new contract include the following:

• Sovereign Yield Spread futures wrap a sovereign yield spread exposure into a single futures contract — with no need to execute and manage individual legs in cash bond/repo markets or across multiple futures exchanges.
• Sovereign Yield Spread futures make trading and monitoring of sovereign yield spread exposures simpler, more cost-effective, and more capital efficient than ever before.
• Sovereign Yield Spread futures are cash-settled and trade exclusively on CME Globex.

Key facts:

• Pair-wise spreads among 10-year sovereign bond yields of:
  
  • France (OATs)
  • Germany (Bunds)
  • Italy (BTPs)
  • Netherlands (DSLs)
  • UK (Treasury Gilts)
  • US (10-Year Treasury Notes)
• Reference Bond price evaluations provided by a designated third-party price evaluation service
• Price basis: Modified IMM Index = 100 + Yield Spread
• Yield spread = "Sold" Nation yield minus "Bought" Nation yield
• Contracts expire by cash settlement on last trading day
• Block minimum: 250 contracts
• Electronically traded on CME Globex
• Centrally cleared