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KRX Korea Treasury Bond (KTB) Futures
Exchange-Listed Access to the Korean Government Bond Yield Curve.
KRX Korea Treasury Bond (KTB) Futures are interest rate futures listed on the Korea Exchange (KRX), giving market participants access to key points on the Korean government bond yield curve through three tenors: 3-Year, 5-Year and 10-Year. Each contract is based on a notional Korea Treasury Bond with a 5% coupon rate and semiannual coupon payments, with a contract size of KRW 100 million.
All three contracts are cash-settled against a basket of eligible Korea Treasury Bonds. Yield data is published daily by the Korea Financial Investment Association (KOFIA), which supports transparent pricing and makes the contracts useful for hedging and managing interest rate exposure to Korean government debt.
Key Benefits
- Coverage Across the Yield Curve
- 3-Year, 5-Year and 10-Year tenors let market participants manage interest rate exposure at the short, medium and long ends of the Korean government bond curve.
- 3-Year, 5-Year and 10-Year tenors let market participants manage interest rate exposure at the short, medium and long ends of the Korean government bond curve.
- No Need for Physical Delivery
- Contracts are cash-settled on the day after the last trading day, based on a basket of eligible Korea Treasury Bonds.
- Contracts are cash-settled on the day after the last trading day, based on a basket of eligible Korea Treasury Bonds.
- Transparent Price Discovery
- KOFIA publishes bond yield data to market participants and information vendors at 11:30 and 16:00 each day, which supports settlement price calculation.
- KOFIA publishes bond yield data to market participants and information vendors at 11:30 and 16:00 each day, which supports settlement price calculation.
- Standardised Contract Structure
- All three tenors share a contract size of KRW 100 million, a tick size of 0.01 point (KRW 10,000) and two listed quarterly contract months.
- All three tenors share a contract size of KRW 100 million, a tick size of 0.01 point (KRW 10,000) and two listed quarterly contract months.
- Established Market
- KTB Futures have traded on KRX since 1999, when the 3-Year contract was listed. The 5-Year followed in 2003 and the 10-Year in 2008.
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KRX 3-Year Korea Treasury Bond (KTB) Futures give market participants a tool to manage exposure to short-term Korean government bond yields. The underlying is a notional 3-Year Korea Treasury Bond with a 5% coupon and semiannual coupon payments, and the contract size is KRW 100 million. Listed on KRX since September 29, 1999, the contract trades in a regular session (08:45–15:45) and a night session (18:00–06:00). It is cash-settled against a basket of eligible Korea Treasury Bonds with approximately 3-year maturities.
Source: KRX
This advertisement has not been reviewed by the Monetary Authority of Singapore.
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KRX 5-Year Korea Treasury Bond (KTB) Futures give market participants a tool to manage exposure to the medium-term segment of the Korean government bond curve. The underlying is a notional 5-Year Korea Treasury Bond with a 5% coupon and semiannual coupon payments, and the contract size is KRW 100 million. Listed on KRX since August 22, 2003, the contract is cash-settled against a basket of eligible Korea Treasury Bonds with approximately 5-year remaining maturities.
Source: KRX
This advertisement has not been reviewed by the Monetary Authority of Singapore.
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KRX 10-Year Korea Treasury Bond (KTB) Futures give market participants a tool to manage exposure to long-term Korean government bond yields. The underlying is a notional 10-Year Korea Treasury Bond with a 5% coupon and semiannual coupon payments, and the contract size is KRW 100 million. Listed on KRX since February 25, 2008, the contract trades in a regular session (08:45–15:45) and a night session (18:00–06:00). It is cash-settled against a basket of eligible Korea Treasury Bonds.
Source: KRX
This advertisement has not been reviewed by the Monetary Authority of Singapore.
