U.S. Veterans Day: U.S. Treasury cash bond market closed for the day, while U.S. stocks and Treasury futures trade as usual
Nov. 11 — In observance of the U.S. federal holiday for Veterans Day, the U.S. Treasury cash bond market is closed for the entire day, while U.S. stocks and Treasury futures continue to trade as usual. This creates an unusual market setup in which cash bond trading is halted while stocks and Treasury futures remain open.
According to the schedule set by the Securities Industry and Financial Markets Association (SIFMA), the U.S. Treasury cash bond market is closed for the entire day, temporarily depriving the market of Treasury yields as a key pricing reference.
Unlike the cash market, however, U.S. Treasury futures listed on CME Group will trade as usual, continuing to provide a pricing reference for interest rate expectations.
It is important to distinguish between trading in cash Treasuries and trading in futures, as they are different instruments. The cash market involves buying and selling bonds that have actually been issued, while the futures market involves standardized futures contracts based on U.S. Treasuries.
Although the two markets are closely linked, their trading calendars and arrangements are not the same. Trading in the Treasury cash market follows SIFMA’s holiday schedule, while the futures market operates according to CME’s own trading calendar.
Market analysts believe that, without guidance from cash yields, traders may act with less confidence, and thin liquidity could amplify volatility when large orders enter the market.
Notably, following yesterday’s hotter-than-expected CPI data and hawkish signals from a Federal Reserve governor suggesting a possible 50-basis-point rate hike in December, the market is currently at a critical stage of digesting inflation news.
As a result, the absence of a pricing reference caused by the bond market closure could heighten the risk of short-term volatility. Investors should closely monitor equity index futures, the U.S. dollar, and technology stocks to gauge the direction of changes in risk appetite.
#退伍军人节休市 #美股交易
Nov. 11 — In observance of the U.S. federal holiday for Veterans Day, the U.S. Treasury cash bond market is closed for the entire day, while U.S. stocks and Treasury futures continue to trade as usual. This creates an unusual market setup in which cash bond trading is halted while stocks and Treasury futures remain open.
According to the schedule set by the Securities Industry and Financial Markets Association (SIFMA), the U.S. Treasury cash bond market is closed for the entire day, temporarily depriving the market of Treasury yields as a key pricing reference.
Unlike the cash market, however, U.S. Treasury futures listed on CME Group will trade as usual, continuing to provide a pricing reference for interest rate expectations.
It is important to distinguish between trading in cash Treasuries and trading in futures, as they are different instruments. The cash market involves buying and selling bonds that have actually been issued, while the futures market involves standardized futures contracts based on U.S. Treasuries.
Although the two markets are closely linked, their trading calendars and arrangements are not the same. Trading in the Treasury cash market follows SIFMA’s holiday schedule, while the futures market operates according to CME’s own trading calendar.
Market analysts believe that, without guidance from cash yields, traders may act with less confidence, and thin liquidity could amplify volatility when large orders enter the market.
Notably, following yesterday’s hotter-than-expected CPI data and hawkish signals from a Federal Reserve governor suggesting a possible 50-basis-point rate hike in December, the market is currently at a critical stage of digesting inflation news.
As a result, the absence of a pricing reference caused by the bond market closure could heighten the risk of short-term volatility. Investors should closely monitor equity index futures, the U.S. dollar, and technology stocks to gauge the direction of changes in risk appetite.
#退伍军人节休市 #美股交易
