What does BOBL Futures Contract mean?
BOBL is an acronym for a German term ‘Bundes obligation’ which translated to english basically means a federal government bond. BOBL Futures Contract is a standardized futures contract whose underlying asset is a basket of medium-term bonds issued by German Federal Government. The remaining maturity of these bonds is 4.5 to 5.5 years with a coupon of 6%.
Futures Knowledge Explains BOBL Futures Contract
Each future contract has a notional value of 100,000 euros and is traded on the Eurex Exchange. Prices are quoted in 0.01 percent of par value. For example, Euro-Bobl Front month futures traded at 128.63 on May 6, 2015. Euro-Bobl Futures contracts are created for the last month of each quarter: March, June, September and December.