Treasury Futures Quoted in 32nds — How to Read Them and Price a Tick
Treasury futures do not quote in decimals. ZB at 110-16 does not mean 110.16. This one convention causes more spreadsheet errors than any other in futures, because the number looks like a decimal and is not one.
The notation
A treasury price has two parts: points, and 32nds of a point.
| Quote | Meaning | Decimal |
|---|---|---|
| 110-16 | 110 and 16/32 | 110.500000 |
| 110-165 | 110 and 16.5/32 | 110.515625 |
| 110-168 | 110 and 16.875/32 | 110.527344 |
| 110-00 | 110 exactly | 110.000000 |
| 110-31 | 110 and 31/32 | 110.968750 |
Some platforms print 110’16 (apostrophe) instead of 110-16 (hyphen). Same thing. The third digit, when present, is eighths of a 32nd — 1/8 of 1/32 is 1/256 of a point.
The error that costs money
Reading 110-16 as 110.16 understates the price by 0.34 points. On ZB, one point is $1,000, so that reading error is $340 per contract before you have traded anything.
The reverse error is worse: a trader who enters 110.16 into a spreadsheet and lets a formula subtract it from 110.50 gets a move of 0.34 points — 10.88 ticks — when the real move was 16/32 = 0.5 points = 16 ticks. Every P&L, every stop distance, every hedge ratio built on that cell is wrong.
Tick sizes across the treasury complex
This is where it gets genuinely confusing: the fractions are not all the same.
| Contract | Symbol | Face value | Minimum fluctuation | Decimal | Tick value |
|---|---|---|---|---|---|
| 30-Year T-Bond | ZB | $100,000 | 1/32 of a point | 0.03125 | $31.25 |
| Ultra T-Bond | UB | $100,000 | 1/32 of a point | 0.03125 | $31.25 |
| Ultra 10-Year | TN | $100,000 | 1/2 of 1/32 (1/64) | 0.015625 | $15.625 |
| 10-Year T-Note | ZN | $100,000 | 1/2 of 1/32 (1/64) | 0.015625 | $15.625 |
| 5-Year T-Note | ZF | $100,000 | 1/4 of 1/32 (1/128) | 0.0078125 | $7.8125 |
| 2-Year T-Note | ZT | $200,000 | 1/8 of 1/32 (1/256) | 0.00390625 | $7.8125 |
| 3-Year T-Note | Z3N | $200,000 | 1/8 of 1/32 (1/256) | 0.00390625 | $7.8125 |
Notice ZF and ZT. Both have a tick value of $7.8125, but ZF is a $100,000 contract ticking in 1/128 and ZT is a $200,000 contract ticking in 1/256. Same dollars per tick, completely different fractions. Quoting them by fraction is what matters; quoting them by tick value is not enough.
Pricing a trade
The formula is unchanged — only the input format is unfamiliar.
P/L = ticks moved × tick value × contracts
Example: long 2 ZB at 110-16, exit 111-08
| Step | Work | Result |
|---|---|---|
| Entry in 32nds | 110 + 16/32 | 16/32 |
| Exit in 32nds | 111 + 08/32 | 32 + 8 = 40/32 from entry point |
| Ticks moved | 40 − 16 | 24 ticks |
| P/L per contract | 24 × $31.25 | $750.00 |
| Two contracts | $750 × 2 | $1,500.00 |
What actually moves treasury prices
Treasury futures trade inversely to yield. A price of 110-16 on ZB corresponds to a yield around 4.3%, and a move of one full point is roughly a 0.1 percentage point move in yield. Traders coming from equities find this inversion disorienting: good economic news pushes yields up and treasury prices down.
- Fed policy expectations — the front end (ZT, ZF) reacts to meeting probabilities, the long end (ZB, UB) to the terminal rate and duration risk
- Inflation prints — CPI and PCE move the whole curve, with the long end more sensitive to surprises
- Supply — auction sizes and results move the curve, especially at the long end
- Flight to quality — risk-off flows bid treasuries, which lowers yields and raises prices
Context, not a forecast. Nothing here tells you which way the curve will move.
Practical tips
- Enter decimals in calculators. 110-16 becomes 110.5. Halves and quarters of a 32nd need 4 to 6 decimal places.
- Do not round to two decimals. 110-165 = 110.515625. Rounding to 110.52 is a $18.75 error on ZB.
- Check the contract before assuming the fraction. 1/32 on ZB and 1/256 on ZT are both "a tick".
- The CBOT trades these, not the NYMEX. If your platform shows them under a different exchange code, check the data feed.
Use the P/L calculator — it accepts decimal prices, so convert first. The specifications table lists the fraction for every treasury contract on one screen.
Frequently asked
Why do treasuries quote in 32nds at all?
Historical convention inherited from the way bond prices were quoted in fractions of a dollar, and it has never been changed because the entire cash and futures market agrees on it. Decimals would be cleaner; 32nds are what the market uses.
What does the third digit mean?
Eighths of a 32nd. 110-165 is 110 and 16.5/32, not 110 and 165/32.
Is a "point" on ZB the same as a point on ZN?
Both are $1,000 per point because both have a $100,000 face value. On ZT, with a $200,000 face, a point is $2,000.
Most-looked-up contracts
- E-mini S&P 500 (ES)
- E-mini Nasdaq-100 (NQ)
- Crude Oil (CL)
- Gold (GC)
- Euro FX (6E)
- Corn (ZC)
- Silver (SI)
- Natural Gas (NG)
- Copper (HG)
Complete list of all 135: futures contract specifications.