U.S. Treasury futures open interest hits new high as liquidity demand in interest rate markets surges

The performance of US Treasury futures and options markets on the CME has recently been impressive, with open interest reaching a significant milestone. According to the latest data, on November 20th, the open interest in this market reached 35,120,066 contracts, surpassing previous records. The following day, trading volume for interest rate futures and options soared to 44,839,732 contracts, the second-highest level in history.

In the current environment where economic growth prospects are uncertain and the Federal Reserve’s rate cut path is unclear, market participants’ trading logic has undergone a noticeable shift. Agha Mirza, head of global interest rates and OTC products at CME, pointed out that under this cloud of uncertainty, more and more traders are turning their attention to CME markets in search of better trading efficiency and sufficient liquidity.

The rise in open interest in futures reflects, to some extent, the urgent demand from institutional investors and hedge funds for interest rate risk management. As signals from the Federal Reserve become more ambiguous, market attention to interest rate derivatives continues to increase, driving sustained activity in the Treasury futures market. This trend indicates that global market participants are increasingly hedging their exposure to cope with the complexities of the macro environment.