Are Most Interest Rate Futures Contracts Physically or Cash-Settled?

Most major interest rate futures contracts are cash-settled. For example, futures on short-term interest rates (like Eurodollar futures) or long-term Treasury bonds are settled in cash.

Physical delivery of the underlying security (like a specific bond) would be highly complex due to the multitude of deliverable bonds. Cash settlement based on a final settlement price or index is far more efficient and practical for managing interest rate risk.