As of 2019[update], the global market for exchange-traded interest rate futures was notionally valued by the Bank for International Settlements at $34,771 billion.
As pressure to raise interest rates rises, futures contracts will reflect that speculation as a decline in price.
The seller can choose to deliver a variety of bonds to the buyer that fit the definitions laid out in the contract.
Contracts vary, but are often defined upon an interest rate index such as 3-month sterling or US dollar LIBOR.
Both Liffe and CME allow direct exchange trading in calendar spreads (the order book for spreads is separate from that of the underlying futures), which are quoted in terms of implied prices (price differences between futures of different expiries).