FundRobot » Bond Funds » 30 day fed funds future contract size?

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Old   #1 (permalink)
 
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Default 30 day fed funds future contract size

30 day fed funds futures contracts are traded on the interest value of a $5,000,000 bond.

the current rate is .08%

so does that mean that it would potentially cost a bank $4000/month (5,000,000 * .0008) or about $133 a day to borrow $5,000,000?

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Old   #2 (permalink)
 
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Default 30 day fed funds future contract size

Futures contract not an important determinant of Fed Funds rate. If current Fed funds rate = 0.08% then borrowing $5M costs 0.0008*5M/360 per day = $11
JohnyZone is offline   Reply With Quote
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