NEW YORK, June 7 Speculators in the latest week
turned bullish on U.S. 10-year Treasury note futures after
weaker-than-expected factory data pared worries the Federal
Reserve might reduce its bond purchases later this year,
Commodity Futures Trading Commission data showed on Friday.
The amount of bullish, or long, positions in 10-year
Treasury futures from speculators exceeded bearish, or short,
positions by 19,684 contracts on June 4, according to the CFTC's
latest Commitments of Traders data.
There were 35,505 more speculative shorts in 10-year note
futures than longs a week earlier. That was the most speculative
net shorts in 10-year T-notes since March 12, when they totaled
September 10-year Treasury futures fell 25/32 to 129
on Friday, while the yield on cash 10-year Treasury notes
rose 9 basis points to 2.168 percent, according to
On Monday, the Institute for Supply Management said its
index on U.S. manufacturing activity fell to its lowest in four
years in May, suggesting the economy might be slowing and
requiring high levels of stimulus from the U.S. central bank.
But a mildly better-than-expected payroll report for May
released on Friday rekindled concerns the economy might be
strong enough for the Fed to consider scaling back its bond
purchases as soon as the third quarter, analysts said. Investors
sold bonds in reaction to the latest jobs report.
Worries about the Fed paring its $85 billion monthly
purchases of Treasuries and mortgage-backed securities have
spurred selling in U.S. Treasuries in recent weeks. U.S.
Treasury yields jumped to 13-month-plus highs last week.
Speculators also turned more bullish on medium- and
longer-dated Treasury maturities before the jobs data, but
raised their bearish bets on shorter maturities, according to
the latest weekly CFTC Commitments of Traders figures.
Speculative long trades in five-year Treasury note futures
exceeded short positions by 140,929 contracts, up 83,226
from the prior week.
Speculators turned net long in 30-year bond futures
by 2,369 contracts on Tuesday, compared with a net short total
of 27,251 contracts from a week earlier.
The net shorts in "ultra" long T-bond futures shrank
slightly by 887 contracts to 30,584 in the latest week.
However, speculators' short positions in two-year T-note
futures exceeded their longs by 33,608 contracts on
Tuesday. A week earlier, they held 17,580 more shorts in
two-year T-notes than longs.