NEW YORK, June 14 Speculators turned mildly
bearish on U.S. 10-year Treasury note futures ahead of
Wednesday's $21 billion 10-year auction, prompted by nagging
worries the Federal Reserve might pare its bond purchases later
this year, 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 9,195 contracts on Tuesday, according to the CFTC's
latest Commitments of Traders data.
There were 19,684 more speculative longs in 10-year note
futures than shorts a week earlier..
The flip back into bearish positioning in 10-year T-notes
came on a volatile trading day when the yield on the 10-year
Treasury note rose to a 14-month high of 2.293
percent before retreating to end the day at 2.190 percent after
bargain-minded investors emerged.
"This is the fourth reversal in the market's net positioning
in as many weeks, underscoring the recent yield volatility
observed in spot markets," Gennadiy Goldberg, interest rate
strategist at TD Securities, wrote in a note.
Goldberg said overall positioning in Treasuries futures
turned net short by $4.4 billion, compared with a net long worth
$2.2 billion last week.
The 10-year note yield ended lower on Friday at 2.129
percent on bets the Fed will keep short-term interest rates near
zero for a protracted period after it stops buying Treasuries
and mortgage-backed securities.
The 10-year T-note futures for September delivery
finished 18/32 higher on Friday at 129-18/32, the highest level
in a week.
Speculators also pared bullish bets on five-year Treasury
note futures and turned bearish on 30-year Treasuries futures,
according to the latest weekly CFTC Commitments of Traders
Speculative short trades in five-year Treasury note futures
exceeded long positions by 94,173 contracts, down 46,756
from the prior week.
Speculators turned net short in 30-year bond futures
by 17,718 contracts on Tuesday, compared with a net long total
of 2,369 contracts a week earlier.
On the other hand, they reduced their bearish bets on
two-year and ultra-long bond futures.
Speculators' short positions in two-year T-note futures
exceeded their longs by 2,133 contracts on Tuesday. A
week earlier, they held 33,608 more shorts in two-year T-notes
The net shorts in ultra-long T-bond futures shrank by 4,839
contracts to 25,745 in the latest week.