Interest Rate Futures: Eurodollar vs Treasury

Jun 28, 2022

By The Small Exchange

Overview

Eurodollar futures present one of the most popular benchmarks for short-term interest rates, and they're currently showing an inversion. Frank helps define this nuanced market, and he goes on to compare it to US Treasuries to not only flesh out the product but also show a unique trading opportunity based in a yield curve inversion.

Frank covers definitions, projections, and even forward curves in his rigorous description of the Eurodollar market, and he concludes the segment with a practical first trade in what might be a new product for you.

Contents

0:05 Interest Rate Futures: Eurodollar vs Treasury

1:05 What are Eurodollar Futures?

2:35 What are Treasury Futures?

3:15 The Eurodollar Forward Curve

4:20 Zooming in on the Dec 22 Eurodollar

5:10 Trading Eurodollars against Treasuries

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