Hi, I am curious about who trades interest rate futures. Today there were a couple of price levels that traded more than 90K contracts in the ZN. This high volume is intriguing to me. Who is pushing all of this volume? I honestly don't have a clue who trades interest rate futures.

Thanks,

Blackgrey45

Who trades interest rate futures?

Broker/Dealers
Banks
Insurance Companies
Investment Management Companies
Hedge Funds
CTAs
Sovereign Wealth Funds
Corporate Treasury Managers
Family Offices
Prop Shops
Independent / Retail Traders

I mean, basically everyone. Interest rates are by far the most heavily traded futures markets by volume.

For perspective, 90k contracts in ZN at current prices is less than $10bn notional. Large banks and mortage lenders actively hedge their loan books with futures (and swaps, among other things) and some of these institutions have assets in excess of a trillion dollars - and they're just one small part of the overall rates market.

It's truly staggering how much volume trades in interest rates every day, and it comes from all corners of the global markets. But it certainly keeps things interesting.