US 30 YR. T-BOND INVESTING
Instrument- US 30 YR. T-BOND
Minimum spread- 0.2
Typical spread- 1.8
Minimum nominal trade size- 1000
Overnight interest (annual) sell- -0.60%
Overnight interest (annual) buy- -0.1.70%
Trading hours (GMT) – 24*5
Treasury Market Overview
United States Treasury securities are government debt instruments issued by the United States Department of the Treasury to finance government spending as an alternative to taxation. Treasury securities are often referred to simply as Treasury. Since 2012, U.S. government debt has been managed by the Bureau of the Fiscal Service, succeeding the Bureau of the Public Debt.
There are four types of marketable treasury securities: Treasury bills, Treasury notes, Treasury bonds, and Treasury Inflation Protected Securities (TIPS). The government sells these securities in auctions conducted by the Federal Reserve Bank of New York, after which they can be traded in secondary markets.
Understanding the US 30 YR. T-BOND
The U.S. federal government suspended issuing 30-year Treasury bonds for four years from February 18, 2002, to February 9, 2006. As the U.S. government used budget surpluses to pay down federal debt in the late 1990s, the 10-year Treasury note began to replace the 30-year Treasury bond as the general, most-followed metric of the U.S. bond market. However, because of demand from pension funds and large, long-term institutional investors, along with a need to diversify the Treasury’s liabilities—and also because the flatter yield curve meant that the opportunity cost of selling long-dated debt had dropped—the 30-year Treasury bond was re-introduced in February 2006 and is now issued quarterly. In 2019, Treasury Secretary Steven Mnuchin said that the Trump administration was considering the issuance of 50-year and even 100-year Treasury bonds.
Factors to keep in mind while trading US 30 YR. T-BOND
- Economic conditions: Investor sentiment and confidence are influenced by economic factors. During a bear market, they look for more stable investments.
- Demand for risk-free securities: Demand rises when economic conditions force investors to look for returns outside of the stock market.
- Supply of T-bills: When demand for T-bills fluctuates, so does the supply. The Fed can increase or reduce the supply as part of its monetary policy.
- Monetary policy: The Fed uses monetary policy to control inflation or other economic swings.
- Inflation: An increase in prices leads to a decrease in the purchasing power of currencies.
Why trade in US 30 YR. T-BOND with CAPITAL STREET
- BROAD RANGE OF MARKETS- Access to the popular Forex markets, including major, minor and exotic pairs
- CSFX offers you our state-of-the-art platforms and a range of trading tools
- Trade using Margin- Get greater exposure to the marketplace with a small deposit and spread your capital using margin.
- Automate your trade facilities and direct access to the market
- Safety of funds