What are Treasury Futures?

Among the most liquid products in the world, U.S. Treasury futures lend theamselves to a variety of risk management and trading application, including hedging, income enhancement, duration adjustments, interest rate speculation  and spread trades. (CMEGroup.com)

Treasury futures have grown to become fundamental risk management tools for investors around the world. Managing interest rate risk is a very necessary component of most investors long term investment portfolio strategies.

Strategy:

At Atlas, we have  implemented a hedge strategy  protecting our clients from exposure to interest rate risk or matching client risk tolerance and their expectations of future-pattern prices. By going short different key treasury futures, we would achieve a perfect-hedged portfolio with duration equal to zero, meanwhile, still yield  a normal return to clients.