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Trading in financial markets involves significant risk of loss which can exceed deposits and may not be suitable for all investors.
Before trading, please ensure that you fully understand the risks involved
Trading in financial markets involves significant risk of loss which can exceed deposits and may not be suitable for all investors. Before trading, please ensure that you fully understand the risks involved
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Treasuries

The treasuries market includes government debt instruments including gilts, bunds, bonds, and treasury notes.

With Century Financial, you can trade treasury contracts for difference (CFDs). You can trade treasuries in global markets including the US, Canada, Asia, and Europe, and check market movements and make trading decisions in seconds.

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Treasuries

Treasury securities comprise a significant segment of the domestic and international bond markets. It is a popular gateway to diversify your investment portfolio.

We offer CFDs on over 90 government bonds and interest-rate instruments across the globe, with leverage, including both cash and forward products.

In case of trading treasuries, you speculate on the price of bond future contract, without owning the asset. In comparison with other CFDs, you typically speculate on the underlying price of an asset.

What induces volatility in bond prices?

If bond prices rise there could be a slowdown of general economic activity, while fall in prices could result in rising of interest rates.

If we have huge potential on corporate debts, then bonds become more attractive for security.

Trading Treasury Securities

When you purchase a treasury security for a set time period, the government owes you money.

You are eligible to receive ongoing interest from the value of the loan, even though the face value of the bond remains unchanged. Moreover, it is not mandatory to hold the bonds until the maturity.

Further, you can speculate on the likely future value of the bond. There are several factors that can influence the bond value, including geopolitical developments in the economy of that country, the monetary policies affecting the risk of inflation, or the value of its currency.

Choosing Treasury Securities

You can place CFD trade on government treasury securities across:

iconEuro Dollar
iconBund
iconBobl
iconBTP
iconT-Bond
iconT-Note
iconEuribor
iconShort Sterling
iconEuro OAT
iconUK Gilt

3 Key Categories

Treasury Bills

A Treasury Bill (or T-Bill) is a short-term debt obligation backed by the U.S. Treasury Department with a maturity of one year or less. Treasury bills are typically sold in denominations in $1,000-$5 million range.

The longer the maturity date, the higher is the interest rate that the Treasury Bill will pay to the investor.

Treasury Notes

A Treasury note (or T-note) is a marketable government debt security with a fixed interest rate and a maturity of 2-10 years.

The Treasury auctions 2-year notes, 3-year notes, 5-year notes, and 7-year notes on a monthly basis. The agency issues 10-year notes in February, May, August, and November, and as re-openings in the remaining eight months. Treasury notes, pay interest semi-annually, and are issued at a $100 par value and mature at the same price.

Treasury Bond

Treasury bonds (T-bonds) are fixed-rate U.S. Federal government debt securities with a maturity of 20-30 years. T-bonds pay interest semi-annually till maturity, at which point, the owner receives the face value of the bond.

Treasury bonds earn periodic interest till maturity, at which point, the owner receives an amount equal to the principal. It must be noted that, yield is referred as the interest rate paid by the bond.

How to invest in Treasury bonds?

Treasury bonds are considered popular investment products, and usually trade in the public markets daily during market hours.

There are several factors that can influence the future value of a country’s bonds, depending on the economy’s health and geopolitical factors.

Traders watch the price movements to speculate on the treasury securities. Typically, trading treasury securities CFDs does not require one to directly own the asset.

For instance, when a country’s currency depreciates, or it is amid looming political crisis, one expects the value of the treasury bond to fall, in which case the trader chooses to go short.

Depending on how things take a turn, the trade results in profit or loss. Note that, leverage amplifies both profit and loss.

Investment Approach

CFD Trading in Treasuries can be best understood with an illustration:

Let’s say the Gilt future expiring in June 2022 is quoted at a bid/offer price of 12731/12733.

Profitable Trade Scenario

You expect the Gilt price to rise so you consider going long on one contract of the March Gilt future.

You bought at 12733, the price increased to the quote of 13021/13024, and you wish to book the profits. You sell the position by closing the transaction at the selling price of 13021.

Your total profit = (13021-12733) *1 = 288

Unprofitable Trade Scenario

You expect the Gilt price to rise so you consider going long on one contract of the March Gilt future.

You bought at 12733, the price declined to the quote of 12501/12504, and you wish to take the loss. You sell the position by closing the transaction at the selling price of 12501.

Your total loss = (12501-12733) * 1 = -232

Why Trade Treasuries CFDs with Century Financial?

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Choose over 90 government bond and interest-rate instruments globally
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Tight spreads offering potential to profit from small price movements
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Flexible leverage to control your level of risk
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Go long or short
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