In 1975, the Chicago Board of Trade (CBOT) introduced interest rate futures to meet a growing demand for products that could protect against fluctuations in the cost of borrowing money. Treasury bonds and later T-notes became the most liquid futures markets as banks, investment firms and private funds all used the Treasury products to hedge against movements in interest rates. Yet, at a time when interest rates and the cost of borrowing are at the center of not only financial but mainstream news media, most individual investors know little about trading these markets, and even less about doing it successfully. Much of the information available is complex and meant for a sophisticated or institutional audience. But what about the individual investor? With the Federal Reserve dominating daily headlines, and the average investor finding he has a vested interest in the credit markets (whether he knew it or not), Treasury futures are gaining popularity.
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