DEFINITION of 'BOBL Futures Contract'

A futures contract with medium term debt that is issued by the Federal Republic of Germany as its underlying asset. The contract has a notional contract value of 100,000 euros, with a term to maturity of 4.5 to five years. Unlike most other types of future contracts, BOBL future contracts tend to be settled by delivery.

BREAKING DOWN 'BOBL Futures Contract'

In America, these futures contracts are traded on the Chicago Board of Trade, under the symbol GBM. The Euro-Bobl future, along with the Euro-Bund and Euro-Schatz futures, are the most heavily traded fixed-income securities in the world.

BOBL is an acronym for bundesobligationen. This translates to 'federal obligations' in English.

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