Schatz-bund futures are the short-dated equivalent of the bobl and bund futures.
Here the underlying deliverable product is German debt securities with a remaining term of 1.75 to 2.25 years and a coupon of 6%.
Germany hasn’t issued debt with a coupon as high as 6% for some time and so the contract values are adjusted to reflect the market price of a bond with a 6% coupon.
Yesterday yield on the German 2-year bond today has fallen to zero.
But (perhaps) Germany will return your money in two years.
Today negative yield ?
