10-Year T-Note (ZN)

What ZN tracks

ZN is the CBOT 10-Year US Treasury Note futures contract. Each contract represents $100,000 face value of Treasury notes with at least 6 years 6 months and less than 8 years left to maturity, and an original term of no more than 10 years.

ZN is the main US interest rate futures contract for many traders. Its price moves opposite to 10-year yields, which influence mortgage rates and the valuation of stocks. When 10-year yields rise, ZN falls.

ZN contract specifications

Specifications come from CME Group: CBOT Rulebook Chapter 19, CME basics of US Treasury futures. CME can change trading hours, listed months and other terms, and holiday schedules differ, so confirm the details on CME Group's site before you trade.

What moves ZN

Several forces tend to drive ZN prices. None of them predicts direction on its own, and they often pull in different ways at the same time.

• Federal Reserve policy. Expectations for the federal funds rate feed into Treasury yields across the curve.
• Inflation data. CPI and PCE inflation reports change expectations for rates and for how much investors demand to hold bonds.
• Jobs and growth data. Strong data tends to push yields up and futures prices down. Weak data tends to do the opposite.
• Treasury supply. The size of Treasury auctions and how well they are received can move yields.
• Flight to safety. In market stress, investors often buy Treasuries, which pushes prices up and yields down.

Example P&L math

Treasury futures are quoted in points, where one point is worth $1,000 per contract. Say ZN rises by a half-point (16/32), for example from 110-00 to 110-16. That is 32 minimum ticks of $15.625:

• 32 ticks × $15.625 = $500 per contract.
• A short position would lose the same $500. Remember that the price rises when yields fall.
• Each full point is worth $1,000 on ZN, ZF and ZB alike, but the minimum tick differs: $7.8125 on ZF, $15.625 on ZN and $31.25 on ZB. Longer-dated contracts usually move more points for the same change in yield.

These figures exclude commissions, exchange fees and slippage. Those costs shrink a winning trade and add to a losing one.

To run your own numbers, use the tick value calculator and the position size calculator on our tools page.

Margin

CME Group sets minimum performance bonds (margins) for every contract, and each broker then sets its own requirement, which can be higher. Many brokers also offer lower day-trading margins for positions closed before the session ends. These figures change often, especially when markets get volatile, so we do not quote a number here. Check your broker's current margin page before you trade, and compare brokers on our futures brokers page. Remember that margin is not the most you can lose. Losses on a futures position can exceed the margin you deposit.

Choosing between ZF, ZN and ZB

CME does not list a one-tenth micro version of ZN. Within the Treasury futures covered here, the choice is about where on the yield curve you want exposure and how large each tick is.

ZF usually moves the fewest points per change in yield and has the smallest tick, which suits traders who want finer control. ZB moves the most and has the largest tick. ZN sits in between and is the contract most traders think of first. Whichever you choose, a one-point move is $1,000 per contract, so even the smaller-tick contracts carry meaningful risk.

Position sizing

A common approach is to decide how many dollars you are willing to lose on a trade, then work out how many contracts fit. For example, with $200 of planned risk and an 8-tick stop on ZN, each contract risks $125, so 1 contract fits within that limit.

This example ignores commissions, fees and slippage, which make real losses larger. Stops can also fill worse than planned in fast markets.

Expiry and rolling

ZN is physically delivered. If you hold a position after the last trading day, you can end up making or taking delivery, which retail and prop firm accounts are not set up for. Brokers usually require you to close or roll before a cutoff they set, which can be earlier than the exchange's last trading day. Check the CME calendar for exact dates each month.

Related contracts

• 5-Year T-Note (ZF)
• 30-Year T-Bond (ZB)
• E-mini S&P 500 (ES)
• Japanese Yen (6J)

See every contract we cover on the futures contracts page.

Frequently asked questions

What is the tick value of ZN?

One minimum tick on ZN is one-half of 1/32 of a point, worth $15.625 per contract. The point value is $1,000 per full point.

What are the trading hours for ZN?

Sunday to Friday, 6:00 p.m. to 5:00 p.m. ET (5:00 p.m. to 4:00 p.m. CT). Holiday hours differ, so check CME Group's holiday calendar.

Is ZN cash-settled or physically delivered?

ZN is physically delivered. The last trading day rule: no trading in the expiring contract during the last 7 business days of the contract month. Delivery can occur through the last business day of the month.

How much margin do I need to trade ZN?

Margins are set by CME and then by each broker, and they change with market conditions. Check your broker's current margin page, and see our futures brokers comparison.

How are ZN prices quoted?

ZN is quoted in points and 32nds of a point. The minimum tick is half of 1/32, worth $15.625. A price of 110-16 means 110 and 16/32. Trading platforms display half-32nds in different ways, so check how yours shows them.