UPDATE 1-Speculators raise net shorts in U.S. 10-year T-note futures-CFTC
Dec 20 (Reuters) - Speculators' net bearish bets on U.S. 10-year Treasury note futures grew in the latest week before the Federal Reserve announced its decision to taper its bond purchases, according to Commodity Futures Trading Commission data released on Friday.
The amount of speculators' bearish, or short, positions in 10-year Treasury futures exceeded bullish, or long, positions by 155,209 contracts on Dec. 17, according to the CFTC's latest Commitments of Traders data.
A week earlier, speculators held 150,029 net short positions in 10-year T-note futures.
On Wednesday, the U.S. central bank, after acknowledging further improvement in the economy, said it will start reducing its bond-purchase stimulus program in January by $10 billion from the current monthly pace of $85 billion. But Fed policymakers remained worried about the relatively high level of unemployment and weak pace of price growth, which led analysts to say the Fed will likely keep rates near zero for a protracted period even after it ends its asset purchase program.
This policy move led to a flattening of the yield curve since Wednesday as the spread between five-year and 30-year Treasuries yield narrowed to the tightest level since September.
On Friday, the five-to-30-year part of the yield curve shrank to 2.15 percent from 2.34 percent a week earlier.
On the futures market, the March 2014 10-year T-note contract ended at 123-24/32, down from 124-8/32 a week ago.
Speculators' long positions in two-year T-note futures exceeded shorts by 32,141 contracts on Tuesday, according to the most recent data, down 71,333 from the previous week. .
Speculators built their net longs in five-year Treasury note futures. They held more 35,194 long positions in five-year T-notes than short positions on Tuesday, up from 26,627 the prior week.
Speculators increased their net longs in 30-year bond futures by 8,615 contracts in the latest week to 9,164, according to the latest CFTC Commitments of Traders figures .
However, they raised their net shorts in ultra-long T-bond futures by 4,789 contracts to 13,170..
- Malaysia military source says missing jet veered to west |
- Ukraine appeals to West as Crimea turns to Russia |
- Malaysia air probe finds scant evidence of attack: sources |
- UPDATE 1-Missing Malaysian plane last seen at Strait of Malacca-source
- Libyan parliament sacks PM after tanker escapes rebel-held port