Easy Money Scanner

Interest rate futures

What is the 10-Year Treasury Note (ZN) futures contract and how is its price structured?

By Easy Money Scanner · Educational reference · Not investment advice

The short answer

The ZN futures contract tracks the price of a hypothetical 6% coupon 10-year US Treasury note, with a $100,000 face value and deliverable notes between 6.5 and 10 years maturity.

How it works

Priced in points and 1/64ths, ZN is a key benchmark for intermediate-term interest rate hedging and speculation, settling via physical delivery of eligible Treasury notes.

An example

A trader hedging a 10-year loan portfolio sells ZN futures to offset losses if interest rates rise and bond prices fall.

Risk & limitations

Cheapest-to-deliver dynamics and conversion factors can cause ZN price moves to diverge slightly from actual 10-year cash Treasury yields.

Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.

Sources & further reading