UPDATE 1-Speculators turn bearish on U.S. 10-year notes-CFTC

Fri May 17, 2013 4:19pm EDT

NEW YORK May 17 (Reuters) - Speculators turned bearish on U.S. 10-year Treasury note futures in the latest week after an unexpected rise in April retail sales suggested underlying strength in the U.S. economy, according to Commodity Futures Trading Commission data released on Friday.

The amount of bearish, or short, positions in 10-year Treasury futures from speculators exceeded bullish or long positions by 11,153 contracts on May 14, according to the CFTC's latest Commitments of Traders data.

There were 37,956 more longs in 10-year note futures than shorts a week earlier.

It was the first time in two months that speculators held a net bearish position in 10-year T-note futures.

Over a week after an upbeat April payrolls report, the government said on Monday retail sales edged up 0.1 percent after a 0.5 percent drop in March. Economists had expected a 0.3 percent decline.

June 10-year Treasury futures fell 18/32 to 131-28/32 on Friday, while the yield on cash 10-year Treasury notes rose 7 basis points to 1.949 percent, according to Reuters data.

Speculators pared bets across most Treasury maturities in the latest week, according to the latest weekly CFTC Commitments of Traders figures.

Speculative long positions in two-year T-note futures fell by 8,242 contracts to 35,184 on Tuesday.

Speculative long trades in five-year Treasury note futures exceeded short positions by 118,458 contracts, down 36,723 from the prior week.

The net shorts in "ultra" long T-bond futures grew to 23,583 in the latest week, 6,548 more contracts than the previous week.

The sole exception in speculative positioning in the latest week was in 30-year bond futures. Speculators raised their net long positions in 30-year bond futures to 14,638 contracts on Tuesday, up 7,149 contracts from a week ago.