Interest Rate Future

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Dictionary Says

Definition of 'Interest Rate Future'

A futures contract with an underlying instrument that pays interest. An interest rate future is a contract between the buyer and seller agreeing to the future delivery of any interest-bearing asset. The interest rate future allows the buyer and seller to lock in the price of the interest-bearing asset for a future date.
Investopedia Says

Investopedia explains 'Interest Rate Future'

Interest rate futures can be based on underlying instruments such as:
  • Treasury Bills in the case of Treasury Bill Futures traded on the CME
  • Treasury Bonds  in the case of Treasury Bond Futures traded on the CBT
  • Other products such as CDs, Treasury Notes and Ginnie Mae's are also available to trade as underlying assets in an interest rate future
Because interest rate futures contracts are large in size (i.e. $1 million for Treasury Bills), they are not a product for the less sophisticated trader.
Search results for

'Interest Rate Future'

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    ... Basically, the problem with high initial interest rates can be mitigated in the
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  • How Interest Rates Affect The Housing Market

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    ... If you're trying to forecast what 30-year fixed-rate mortgage interest rates will
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  • Understanding Interest Rates, Inflation And The Bond Market

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    ... bond market believes that the FOMC has set the fed funds rate too low, expectations
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  • How do companies benefit from interest rate and currency swaps?

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    ... markets. Swaps also help companies hedge against interest rate exposure
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  • Using Interest Rate Parity To Trade Forex

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    ... for interest rate differentials, they also have little predictive power in terms
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  • Immunization Inoculates Against Interest Rate Risk

    http://www.investopedia.com/articles/financial-theory/09/bond-interest-rate-immunization.asp
    ... an investor looks at the dates of maturity (if coupons are received), the present
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  • Interest Rates And Your Bond Investments

    http://www.investopedia.com/articles/03/122203.asp
    ... Inflation will erode the value of future coupon dollars and principal repayments;
    the real interest rate is the return after deducting inflation. ...

  • How Interest Rates Affect The Stock Market

    http://www.investopedia.com/articles/06/interestaffectsmarket.asp
    ... a lowered expectation in the growth and future cash flows ... Fed raises the federal
    funds rate, newly offered ... experience a corresponding increase in interest rates ...

  • Forces Behind Interest Rates

    http://www.investopedia.com/articles/03/111203.asp
    ... The higher the rate of inflation, the more interest ... occurs because lenders will demand
    higher interest rates as ... of the money they will be repaid in the future. ...

  • The International Fisher Effect: An Introduction

    http://www.investopedia.com/articles/economics/10/international-fisher-effect.asp
    ... Fisher believed the pure interest rate model was more of a leading indicator that
    predicts future spot currency prices 12 months in the future. ...

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