T-Bill Futures vs. Interest Rate Futures Robert

Elliotbay

If you're long an interest rate future and the rate goes up, you profit, correct?

What if you're long a T-Bill or other fixed income security? Do you profit if the rate goes up, or if the value of the note goes up? I'm not sure how this plays out.

Thank you.

- Robert

shootingstar

yes to first question, no to second

ishfaque

For T bills or any other fixed income security future, you got to look at from "Price" point of view. If you are long in T bill futures...int rate goes up....price of bond will come down and you will lose and vice versa.