Mastering US Treasury Note Futures Trading in 2025: The Ultimate Beginner’s Guide
If you’re searching for how to trade US Treasury note futures, a 10-year note futures strategy, or the best Treasury futures for beginners in 2025, you’ve landed on the most complete, up-to-date guide on the internet.
US Treasury futures — especially the ultra-liquid 10-Year T-Note futures (/ZN) — are the #1 way professional traders and hedge funds express views on interest rates, hedge bond portfolios, or simply profit from Fed policy moves. With over $1 trillion in daily notional volume, these contracts dominate the fixed-income trading market.
In this 2025 guide, you’ll learn:
- What US Treasury note futures are (and why they’re different from bonds)
- Full contract specifications for /ZN, /ZF, /ZT, Ultra T-Note (TN), and micros
- Step-by-step how to start trading Treasury futures today
- Proven strategies (speculation, hedging, curve trades)
- Current margin requirements & cheapest brokers in 2025
- Risk management rules that separate winners from blow-ups
Bookmark this page — it’s designed to rank #1 for “Treasury futures trading guide 2025”.
What Are US Treasury Note Futures?
US Treasury note futures are standardized contracts traded on the CME Group that let you buy or sell a basket of U.S. government notes at a future date. The most popular contracts track:
| Contract | Symbol | Notional Value | Duration Focus | 2025 Daily Volume (avg) |
|---|---|---|---|---|
| 2-Year T-Note | /ZT | $200,000 | ~2 years | ~2–3 million |
| 5-Year T-Note | /ZF | $100,000 | ~5 years | ~4–5 million |
| 10-Year T-Note | /ZN | $100,000 | 6.5–10 years | ~6–8 million |
| Ultra 10-Year | /TN | $100,000 | ~10 years (tighter) | Growing fast |
| 30-Year T-Bond | /ZB | $100,000 | 15+ years | ~1–2 million |
The 10-year T-note future (/ZN) remains the undisputed king for trading the “belly” of the yield curve and betting on Fed policy.
Key 2025 Update
As of November 2025, the Fed funds rate sits in the 4.25–4.50% range after the 2024–2025 cutting cycle. The yield curve has re-steepened, making curve trades (2s/10s steepeners) one of the hottest strategies right now.
Complete /ZN Contract Specifications (December 2025 & Beyond)
| Feature | Detail |
|---|---|
| Symbol | ZN (Globex), /ZN (most platforms) |
| Contract Size | $100,000 face value |
| Tick Size | ½ of 1/32nd = 0.015625 points |
| Tick Value | $15.625 per contract |
| Price Quote | 112-16 = 112.50 (112 + 16/32) |
| Deliverable Basket | Original maturity 6.5–10 years |
| Cheapest-to-Deliver (CTD) conversion factor system (6% standard) | |
| Trading Hours | Sun–Fri 6:00 PM – 5:00 PM ET (Globex) |
| Contract Months | Mar, Jun, Sep, Dec (H, M, U, Z) |
| Last Trading Day | 7th business day prior to last business day of month |
| Micro 10-Year | /MZN – $10,000 notional (perfect for retail) |
How to Start Trading Treasury Futures in 2025 (Step-by-Step)
- Choose a Futures-Enabled Broker: Top picks in 2025 (lowest commissions + great data):
- Interactive Brokers (IBKR) – ~$0.85/contract all-in
- NinjaTrader (with Continuum or Rithmic data)
- TradeStation
- AMP Futures + Sierra Chart (ultra-low cost)
- Fund Your Account Current initial margin for /ZN: ~$3,800–$4,500 per contract (check CME margin page daily — it changes with volatility).
- Get Live Data Free delayed quotes on the CME website; real-time ~$10–$30/month from most brokers.
- Place Your First Trade Example order (December 2025 contract): Buy 1 ZNZ5 at market → Long if you expect yields to fall Sell 1 ZNZ5 at 110-10 limit → Short if expecting higher rates
Top Treasury Futures Trading Strategies for 2025
1. Directional Rate Bets (Most Popular)
- Long /ZN when weak economic data → lower yields → higher prices
- Short /ZN after hot CPI/PPI or strong payrolls
Average move on FOMC day: 20–40 ticks ($312–$625 per contract).
2. Yield Curve Trades
- 2s/10s Steepener: Long /ZT + Short /ZN (or micros). Currently, one of the most crowded (and profitable) trades of 2025.
3. Cash-Futures Basis Trading
Exploit tiny differences between cash Treasuries and futures implied yield. Institutional favorite, but scalable down to 10–20 contracts.
4. Hedging Bond Portfolios
Rule of thumb hedge ratio for a typical bond ETF: ~1 /ZN contract per $100,000–$120,000 of 10-year equivalent duration.
5. Options on /ZN Futures
Buy cheap out-of-the-money puts before FOMC if you want defined risk.
Risk Management Rules (Never Break These)
- Never risk more than 1–2% of the account per trade
- Always use hard stops (mental stops don’t work in Globex gaps)
- Position size: Max 5–10 contracts when starting
- Watch the CTD switch risk near delivery
- Roll positions 1–2 weeks before the first notice date
Final Thoughts: Why Trade Treasury Futures in 2025–2026?
- The highest liquidity fixed-income instrument on earth
- 24-hour market (perfect for news trading)
- Leverage + precision that cash bonds can’t match
- Direct exposure to the most important macro variable: interest rates
Whether you’re a retail trader using micro contracts or managing a multi-million portfolio, US Treasury note futures belong in every serious trader’s toolkit.
Start today with a free simulator account, paper trade the next CPI release, and join the thousands profiting from the world’s most important rates market.
Related popular searches:
- 10-year treasury futures live chart
- How to trade /ZN futures
- Treasury futures margin requirements 2025
- best treasury yield curve strategy
Have questions? Drop them in the comments — I’ll answer every single one.
Happy trading!
Disclaimer: Futures trading contains substantial risk and is not suitable for all investors.
