FundRobot » Bond Funds » why are 30 day fed fund futures quoted as (1-interest)?

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Old   #1 (permalink)
 
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Default are 30 day fed fund futures quoted as (1-interest)

I was looking at the 30 day fed funt futures and noticed that they are quoted 1-interest.

so...

95.00 would be 5% interest
the current price is 99.98 which would be .08% interest

why are they quoted in such a strange way? why not just quote the actual rate in basis points?
Oh yes I must have had .08 on the brain when writing that

TopGear.12 is offline   Reply With Quote
Old   #2 (permalink)
 
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Default are 30 day fed fund futures quoted as (1-interest)

All interest rate futures are quoted that way. It makes them "look like bonds". 99.98 would be 0.02% interest.
JohnyZone is offline   Reply With Quote
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