Unlike a classic bond future, which entails physical delivery of an underlying at the settlement date, the products Euronext.liffe has created include several total return futures contracts based on the EuroMTS government bond indices.
Dealer-to-customer cash bond trading in the government sector is dominated by EuroMTS, so if the futures contracts attracted liquidity they could provide a powerful hedging or speculative tool for dealers and other market participants.
However, eurozone bond futures liquidity currently resides with the Eurex Bund contract.
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