UPDATE 1-Most speculative net shorts in U.S. 10-yr T-note futures since May '12
Aug 30 (Reuters) - Speculators increased their net bearish bets on U.S. 10-year Treasury note futures in the latest week to the highest level in more than a year, according to Commodity Futures Trading Commission data released on Friday.
Worries the Federal Reserve might shrink its $85 billion monthly bond purchases as early as September caused traders to further build bets that bond prices will fall, analysts said.
The amount of speculators' bearish, or short, positions in 10-year Treasury futures exceeded bullish, or long, positions by 110,825 contracts on Aug. 27, according to the CFTC's latest Commitments of Traders data.
This was the most speculative net shorts in 10-year T-note futures since May 22, 2012, when there were 136,190.
A week ago, speculators held 24,840 net short positions in 10-year T-note futures.
Treasury 10-year T-note futures on the Chicago Board of Trade for September delivery fell 11/32 on the day at 125-4/32, while the yield on cash 10-year Treasury notes rose 0.7 basis point to 2.769 percent.
The Treasuries market was on course to post its fourth straight losing month in August, which would be its longest such streak since six consecutive months of losses in late 2010 to early 2011, Barclays index data showed.
Barclays' total return index on Treasuries was down 0.52 percent month-to-date through Thursday, deepening its year-to-date decline to 2.72 percent.
Speculators cut their net longs or increased their net shorts in other Treasury futures in the latest week, according to the latest weekly CFTC Commitments of Traders figures.
Speculators turned net short again in 30-year bond futures after being net long the previous week. They had a net short of 2,485 contracts on Tuesday, compared with a net long of 15,934 a week ago.
They also turned net short ultra-long T-bond futures in the latest week. Short trades exceeded long ones by 1,194 contracts on Tuesday, compared with a net long of 6,822 last week which was the most net longs since Oct. 9, 2012..
Speculators turned net short in five-year Treasury note futures for the first time since mid-January. They had a net short of 16,638 contracts, compared with a net long of 9,080..
Speculators' long positions in two-year T-note futures exceeded shorts by 27,715 contracts on Tuesday, which was the lowest net short level since early July and was down from the 50,372 contracts last week..
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