An interest rate futures contract, such as a t-bond or Eurodollar contract, has an interest-bearing instrument as an underlying asset. These futures are typically employed to hedge against the risk of interest rates rising or falling in an adverse direction.
30-Day Federal Funds- Federal Fund futures contracts indicate the average daily federal funds effective rate in a particular month.
Eurodollar Futures- A common use for Eurodollar futures contracts is to secure the current interest rate on money it expects to borrow at a later time.
Swap Futures- A swap is a derivative in which two parties exchange each other's financial instruments.
T-Bond Futures- Compared with treasury notes or treasury bonds, t-bonds take the longest time to mature.
T-Note Futures- The most commonly quoted and discussed is the 10-year t-note because it articulates long-term expectations of the market.