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Fundamentals of Canadian Fixed Income Futures

Fixed Income Futures Contracts on Montréal Exchange are often used as an efficient and low-cost product to replicate Canadian government bond exposure.

Montréal Exchange now lists futures products on a full interest rate curve of maturities from 1-month to 30-years. Similar products exist in other international markets, notably in the United States, Italy, Germany, France, and the United Kingdom, but derivative exposure to Canadian bonds can only be obtained via products traded on Montréal Exchange.

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