September 23, 2009

CME Announces the Launch of Long-Term U.S. Treasury Bond Futures

The CME Group announced the launch of long-term Bond Futures or "Ultra" Treasury Bonds, beginning in early first quarter 2010.  Interesting development in response to increased investor demand while the US Government is in ever increasing need of finance.  Inquiring minds wonder if this is one of those sign posts of things to come...

I can’t help thinking about the last time we observed the launch of a new futures contract, then with significant ramifications.  It was early 2006, at the height of the real-estate bubble, when the CME launched housing futures.  Is this a similar signal indicating yet another bubble?

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