Ultra U.S. Treasury bond
E548451
The Ultra U.S. Treasury bond is a long-duration U.S. government security used as the underlying asset for certain Treasury futures contracts, offering extended maturity exposure for investors and traders.
Statements (47)
| Predicate | Object |
|---|---|
| instanceOf |
U.S. Treasury security
ⓘ
fixed-income security ⓘ government bond ⓘ |
| assetClass | sovereign bonds ⓘ |
| backedBy | full faith and credit of the U.S. government ⓘ |
| countryOfOrigin | United States of America ⓘ |
| couponType | fixed coupon ⓘ |
| creditRating | U.S. sovereign credit rating ⓘ |
| denominationCurrency | United States dollar NERFINISHED ⓘ |
| interestRateRisk | high price sensitivity to yield changes ⓘ |
| interestRateSensitivity | high duration ⓘ |
| investorBase |
asset managers
ⓘ
institutional investors ⓘ insurance companies ⓘ pension funds ⓘ |
| issuer | United States Department of the Treasury NERFINISHED ⓘ |
| liquidity | high for on-the-run issues ⓘ |
| market | U.S. Treasury market NERFINISHED ⓘ |
| parValue | typically 100 or 1000 USD in quotation terms ⓘ |
| paymentFrequency | semiannual coupon payments ⓘ |
| pricingConvention | price quoted as percentage of par ⓘ |
| principalRepayment | bullet maturity ⓘ |
| regulator |
Federal Reserve (indirectly via monetary operations)
NERFINISHED
ⓘ
U.S. Department of the Treasury NERFINISHED ⓘ U.S. Securities and Exchange Commission NERFINISHED ⓘ |
| riskProfile | low credit risk ⓘ |
| riskType |
inflation risk
ⓘ
interest rate risk ⓘ liquidity risk (for off-the-run issues) ⓘ |
| roleInDerivatives | underlying for Treasury futures contracts ⓘ |
| roleInMarket | benchmark for long-end of yield curve ⓘ |
| settlementCurrency | USD ⓘ |
| taxTreatment |
exempt from most state and local income taxes
ⓘ
subject to federal income tax ⓘ |
| tradedOn | over-the-counter bond market ⓘ |
| typicalMaturity |
greater than 25 years
ⓘ
long-duration ⓘ |
| underlies |
CBOT Ultra T-Bond futures
NERFINISHED
ⓘ
Ultra U.S. Treasury Bond futures NERFINISHED ⓘ |
| usedBy |
hedge funds
ⓘ
liability-driven investors ⓘ proprietary trading desks ⓘ |
| usedFor |
duration hedging
ⓘ
interest rate speculation ⓘ long-term liability matching ⓘ yield curve positioning ⓘ |
| yieldBasis | U.S. Treasury yield curve ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.