2-Year T-Note Futures Futures

For traders looking to hedge risk on the shorter tenor bonds in a portfolio, the 2-year note futures contract may be just what fits.
Like almost everything in the fixed income markets these days, it reacts to Federal Reserve Bank moves and announcements and it is a useful tool to take a position on rate moves, or hedge against adverse interest rate conditions. This contract also allows participants to take a position on the interest rate yield curve.
The 2-years offer deep and liquid markets that can be traded against other points in the yield curve, and also other asset classes such as equities. Equities can have strong interest rate exposure such as insurance companies, banks, construction and home builders.