NEW YORK—CME Group Inc. said on Monday it will launch futures on 20-year U.S. Treasury bonds on March 7, pending regulatory review, to help investors better manage their U.S. Treasury curve exposure. The U.S. Treasury Department reintroduced 20-year bonds in May 2020 and increased securities auction sizes across a range of maturities to raise cash to meet record government borrowing needs at the beginning of the COVID-19 outbreak. Total issuance since March 2020 of 20-year Treasury bonds, which the government had phased out in 1986, has been over $450 billion, creating customer demand for a new product that establishes 20-year yield exposure, said Agha Mirza, global head of rates and OTC products at CME. “The introduction of a futures contract on the U.S. Treasury’s 20-Year bond responds directly to market need for a hedging tool at a time when managing U.S. Treasury market risk is more important than ever,” Mirza …
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