Small Business Resources, Business Advice and Forms from AllBusiness.com

In late April, the CBOT followed through with its plan to switch to a 6% coupon from an 8% on all of its Treasury futures contracts, following a move by the Cantor Exchange a month before. The CBOT implemented the changes starting with its March 2000 contract. The moves are designed to bring

Treasury futures more in line with the current low interest rate environment and make it easier to hedge the benchmark 30-year T-bond.

The switch to a 6% coupon allows a greater number of cash T-bonds to be applied to the contract. Cantor started its 6% coupon with the June contract, allowing both the 6% and 8% contracts to trade alongside each other.

In addition, make sure to read these articles: