How big is the UST cash bond market vs UST futures?

[comagnum]

Dude... what are we, in 3rd grade here?

(a) Daal is asking specifically about "UST cash bond market vs UST futures". SIFMA is the most reliable source for this information this information (as opposed to some pretty memes from the internet). It's pretty obvious that in terms of duration exchanged, futures are more liquid.

(b) in the world where any grown-up market player has access to leverage away from the market, "volume of cash traded" is about as meaningless as notional. An average HFT market maker is far more leveraged during the day than a guy who's trading spooz. What matters is the amount of risk that is being transferred between the participants.

(c) Commodity futures are not always smaller than than the underlying product. At the extreme, commodities markets have far less flow in the physical product than the futures markets.

Spoken like a complete noob.

a.) The OP did not ask about liquidity he asked about size comparisons - Here it is in bold print for you. The spot/cash bond market is far larger than futures.
How big is the UST cash bond market vs UST futures?

b.) Informed & pro traders care a great deal about the instruments underlying cash volume exchanged, if it's not large enough one hedge fund can fling the price around wildly in the direction they desire.

c.) Commodity futures will never be worth more than actual spot, its so far from reality as to be laughable.

 

[sle]

a.) The OP did not ask about liquidity he asked about size comparisons - Here it is in bold print for you. The spot/cash bond market is far larger than futures.
How big is the UST cash bond market vs UST futures?

Let me quote from OP, he was pretty clear I think:

I mean, in terms of daily/weekly/monthly volumes

b.) Informed & pro traders care a great deal about the instruments underlying cash volume exchanged, if it's not large enough one hedge fund can fling the price around wildly in the direction they desire.

That's true for most derivatives and not true for the truly liquid futures. Liquidity begets liquidity, in general, and cash tends to be following the futures most of the time in things like index futures. I.e. tail starts wagging the dog. You see these types of relationships well by looking at small-scale (milliseconds and sometimes second-scale) lead-lag correlations, it becomes pretty clear.

c.) Commodity futures will never be worth more than actual spot, its so far from reality as to be laughable.

Where do you think delivery squeezes come from, then?

PS. while it's fashionable here, I am not trying to belittle your knowledge or anything, I am just throwing in some factual information

 

[Sig]

Spoken like a complete noob.

a.) The OP did not ask about liquidity he asked about size comparisons - Here it is in bold print for you. The spot/cash bond market is far larger than futures.
How big is the UST cash bond market vs UST futures?

b.) Informed & pro traders care a great deal about the instruments underlying cash volume exchanged, if it's not large enough one hedge fund can fling the price around wildly in the direction they desire.

c.) Commodity futures will never be worth more than actual spot, its so far from reality as to be laughable.

Just an FYI, calling @sle "a complete noob" is, trying to put this nicely, laughable. I'm actually a little embarrassed for you because you are a generally intelligent well meaning guy here, and that comment doesn't paint the most positive picture of your situational awareness.

 

[sle]

Just an FYI, calling @sle "a complete noob" is, trying to put this nicely, laughable.

I am a complete noob at many things, so there is nothing wrong with that. To be fair, I think @comagnum misunderstood the OP and I came off a bit argumentative in my initial response to him.