Bonds and bond futures

What is bond trading?

Bond trading involves speculating on the price movements of debt securities issued by governments or corporations, such as US Treasury bonds, UK Gilts and German Bunds. These instruments are effectively loans made by investors to issuers, who promise to repay the principal with interest over time.

Bond prices can move in response to interest-rate decisions, inflation data, credit rating changes and broader economic sentiment.

Rather than buying bonds outright, you can trade CFDs on spot bond CFDs or CFD bond futures.

• Bond spot CFDs track the live price of the underlying bond market. You can also trade selected bond spot markets with knock-out options.
• Bond futures CFDs track futures contracts linked to government bonds, reflecting market expectations for interest rates and economic conditions up to a set expiry date. Knock-out options are not available on bond futures.

Both formats allow you to speculate on bond price movements without owning the underlying bond.

Why trade bonds?

Bond markets can offer a way to diversify your trading strategy beyond shares or indices. As a traditionally lower-volatility market, government bonds are often used by traders to manage risk or hedge other positions.

Bond prices have historically shown a general tendency to move in the opposite direction to interest rates – when rates go up, bond prices often go down, and vice versa. This inverse relationship can create potential opportunities to trade central bank sentiment and economic cycles. However, this relationship can be unpredictable, particularly during times of market stress. Past performance is not a reliable indicator of future results.

Trading bonds via CFD trading also allows you to go long or short, meaning you can speculate on rising or falling bond prices – without needing to buy the full bond or wait for maturity. Knock-outs offer a different approach: trade bond spot markets with built-in risk limits and predefined costs, set upfront, while still accessing full market exposure.

Why trade bonds with Capital.com?

Whether you’re reacting to interest-rate decisions, tracking inflation data, or responding to geopolitical developments, our platform gives you the tools to trade bond markets with clarity.

• Access sovereign bond markets such as US Treasury bonds, UK Gilts, German Bunds and euro-area debt, available as spot bond CFDs and bond futures CFDs
• Trade selected spot bond markets with knock-out options. Knock-outs are not available on bond futures
• Real-time pricing and market data, with transparent spreads and zero commission (other fees apply)
• Advanced charting, price alerts and built-in risk management tools to help monitor market moves and manage risk*

*Stop-losses are not guaranteed. Guaranteed stops incur a fee when activated.