Because the notional bond does not exist, final settlement is made by delivering actual government bonds called deliverable bonds. In Japan, Osaka Exchange lists Medium-term JGB Futures (notional bond with a 3% coupon and a 5-year term), 10-year JGB Futures (6%, 10 years), and Super Long-term JGB Futures (mini) (3%, 20 years), among others.
JGB futures
- Japanese
- 国債先物
- Last reviewed
- September 24, 2026
This is a draft, shown for review before publication.
JGB futures are futures whose underlying is not an actual issued Japanese government bond but a notional bond whose coupon and time to maturity are set by the exchange.
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Explained in detail
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- How Hedge Funds Use Derivatives
- Contract Months and Tick Sizes
- Futures Margin and Daily Settlement
- What Is a Derivative?
- Forwards and Futures
- Exercise Styles: European, American and Bermudan
- Put-Call Parity
- Swaptions
- The Black and Bachelier Models
- Delta Hedging
- Rogue Trading Cases: Barings, Societe Generale and Others
- Timeline: JGB futures begin trading on the Tokyo Stock Exchange
- Timeline: The Tokyo Stock Exchange's derivatives market is integrated into the Osaka Exchange