July 12 Speculators raised their bearish bets on U.S. 10-year Treasury note futures in the latest week after a surprisingly upbeat June payrolls report, according to Commodity Futures Trading Commission data released on Friday.
On Monday, the benchmark 10-year note yield rose to 2.755 percent, a 23-month high, as unexpectedly strong payroll figures released a week ago spurred fresh selling in U.S. Treasuries before buyers stepped in and helped stabilize the market.
U.S. yields have risen sharply since late May on worries the Federal Reserve might reduce its $85 billion-a-month purchases of Treasuries and mortgage-backed securities if the economy improves further.
The amount of bearish, or short, positions in 10-year Treasury futures from speculators exceeded bullish, or long, positions by 47,110 contracts on July 9, according to the CFTC's latest Commitments of Traders data.
This was greater than 22,917 in speculative net short positions the prior week..
On Friday, 10-year T-note futures on the Chicago Board of Trade for September delivery closed down 4/32 at 126-6/32, while the yield on cash 10-year Treasury notes rose 1.6 basis points to 2.588 percent, according to Reuters data.
Speculators also trimmed bullish bets on two-year and five-year Treasury note futures, according to the latest weekly CFTC Commitments of Traders figures.
Their long trades in five-year Treasury note futures exceeded short positions by 89,071 contracts - 36,404 less than the previous week.
Speculators' long positions in two-year T-note futures exceeded their shorts by 11,717 contracts on Tuesday. A week earlier, they were 14,308 net long in two-year T-note futures.
Speculators, however, reduced their net short bets on longer-dated bond futures after the jobs report.
They trimmed to their net shorts in 30-year bond futures by 14,740 contracts to 5,569 on Tuesday.
The net shorts in ultra-long T-bond futures decreased by 897 contracts to 11,381 in the latest week.