US T-NOTE INVESTING
Instrument- US T-NOTE
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’s. 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 T-NOTE
Treasury notes (T-notes) have maturities of 2, 3, 5, 7, or 10 years, have a coupon payment every six months, and are sold in increments of $100. T-note prices are quoted on the secondary market as a percentage of the par value in thirty-seconds of a dollar. Ordinary Treasury notes pay a fixed interest rate that is set at auction. Another type of note, known as the floating rate note, pays interest at a rate that adjusts quarterly based on bill rates.
The 10-year Treasury note has become the security most frequently quoted when discussing the performance of the U.S. government bond market and is used to convey the market’s take on longer-term macroeconomic expectations.
Factors to keep in mind while trading US T-NOTE
- 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 T-NOTE 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