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ZB (30-year Treasury bond futures)

The CBOT futures contract on US Treasury bonds with at least 15 years to maturity, $100,000 face value, quoted in 32nds with a $31.25 tick.

ZB is the classic long-duration rate contract. Its deliverable basket covers bonds with 15 to 25 years remaining, which is why the separate ultra bond contract was created for the true 30-year sector.

Its high duration makes it the most price-sensitive of the mainstream Treasury contracts, and the usual choice for expressing a view on long-term inflation and term premium rather than on Federal Reserve policy.

Example: ZB quoted 118'16 means 118 and 16/32, or $118,500 per contract. A one-point move is $1,000. With a dv01 near $190, a 25-basis-point yield move is worth roughly $4,750 per contract.

Related: treasury-futures, ultra-bond-futures, zn, dv01, thirty-seconds-pricing

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