ZN futures explained: how 10-year Treasury note futures move
ZN is a bet on the US government's 10-year note. Its odd price format puts people off, but one rule unlocks it: when ZN goes up, interest rates are going down.
At a glance
| Item | ZN (10-year US Treasury note) |
|---|---|
| What it is | A futures contract on 10-year US government notes |
| Tick size | 1/64 of a point (half of 1/32) |
| One tick is worth | $15.625 ($31.25 per 1/32, $1,000 per full point) |
| Busiest hours (ET) | 8:20 am–3:00 pm, especially 8:30 am data and 2:00 pm Fed days |
| What moves it most | Inflation, jobs, the Fed, Treasury auctions |
| Trading hours | Sunday 6 pm to Friday 5 pm ET, daily break 5–6 pm ET |
Check cmegroup.com for current specs.
The one rule: price and yield move opposite
A bond pays a fixed amount. If new bonds start paying more (higher yields), old bonds become less valuable. So their price drops.
- ZN up = 10-year yields falling.
- ZN down = 10-year yields rising.
That's why ZN matters even if you never trade it. The 10-year yield affects mortgage rates, company borrowing and stock values. See how interest rates affect stocks.
Reading the price
ZN isn't quoted in decimals. It's quoted in points and 32nds of a point. A price like 110'16 means 110 and 16/32. Each full point is worth $1,000 per contract, so 1/32 is $31.25, and the smallest step, half of a 32nd, is $15.625.
Your charting app may show it slightly differently. Learn your platform's format before you place an order.
What moves it
- Inflation. CPI at 8:30 am ET. Hotter inflation usually means higher yields, so ZN falls.
- Jobs. The monthly jobs report, usually the first Friday at 8:30 am ET.
- The Fed. FOMC statement 2:00 pm ET, press conference 2:30 pm. Hints about future rates matter as much as the decision.
- Treasury auctions. The government sells new 10-year notes on a regular schedule. Weak demand at an auction can push yields up.
- Fear. In a scare, money often runs into Treasuries, pushing ZN up.
When it's busiest
The main US session, roughly 8:20 am to 3:00 pm ET, carries the most volume. 8:30 am on data days and 2:00 pm on Fed days are the big moments. Overnight, it's usually calm unless there's big global news.
CME's hours are set in Chicago time, so ET hours don't change through the year.
Its personality
- Smaller moves, bigger meaning. ZN often moves less than a point in a day. But a small move carries information about the whole economy.
- Clean trends. When the rate story is clear, ZN can trend steadily for weeks.
- Data-day jumps. It can move a lot in the minute after 8:30 am.
- Expires quarterly: March, June, September, December, with delivery of real notes. Traders roll before the delivery period.
Reading it with our method
Mark the last places price turned around on the daily chart. Note the direction. Then remember what it means: a ZN uptrend is a falling-yield trend.
On your entry chart, wait for a candle body to close past a level. The 8:30 am candle often has long tails.
Size from the stop. Example: stop 16/32 away = 32 ticks × $15.625 = $500 per contract. If your plan says $100, ZN is too big for that stop. Check it with the futures tick value calculator. A math example, not a promise.
Common mistakes
- Reading the price as a decimal. 110'16 is 110.5, not 110.16.
- Mixing up price and yield. Yields up means ZN down.
- Ignoring auction days. Check the economic calendar.
- Using a stock-index stop size. ZN moves in much smaller steps.
Questions
What is ZN in futures?
ZN is the CME's 10-year US Treasury note futures contract. Its price moves opposite to 10-year yields.
How much is a tick on ZN?
One tick is 1/64 of a point (half of 1/32), worth $15.625. A full point is $1,000.
Why do bond prices fall when yields rise?
Older bonds pay a fixed amount. When new bonds pay more, the old ones are worth less, so their price drops until their yield matches.
Do 10-year Treasury futures affect stocks?
The 10-year yield affects borrowing costs and how investors value future profits. So big ZN moves often go along with big stock moves.
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