Euro-Schatz contract

The medinm term, 4.5-5.5 years, is the domain of the Enro-Bobl contract, while the 1.75-2.25 year matnrity segment is covered by the Euro-Schatz contract. Both of these fntnres contracts have basically the same specification as the longer-dated contracts described above. All contracts reqnire the delivery of an acceptable German government bond at settlement. 

Probably the most popular euro-denominated contracts available on European bonds are those offered by Eurex Deutschland and, in particular, those on longer-dated bonds issued by the German Federal Government the Buxl, Bnnd, and Bobl. Also popular but at the shorter end of the maturity spectrum are short-term notes issued by either the Federal Government or the Treuhandanstalt the Euro-Schatz notes. 

As an alternative to Eurex s 10-year Euro-Bund future, Euronext LIFFE offers a similar contract again based on a nominal 100,000 contract size, tick value of 10, and the same expiry cycle. The Euro-Schatz counterpart, however, offers a contract size of 200,000. The smallest allowable price movement is one half of a basis point and hence the value of a tick remains at 10. 

---