June 28 Speculators raised U.S. 10-year Treasury
note futures holdings in the latest week after Federal Reserve
Chairman Ben Bernanke offered a blueprint on how the U.S.
central bank might trim its bond purchases this year if the
economy continues to improve, according to Commodity Futures
Trading Commission data released on Friday.
Bernanke's remarks on June 19 about possibly less Fed
stimulus roiled financial markets worldwide. In the bond market,
Treasury yields jumped to near two-year highs on Monday before
retreating a bit.
Markets stabilized this week, partly due to comments from
other Fed officials, which analysts say were aimed to assure
investors the central bank will keep short-term interest rates
near zero even well after it stops buying bonds, which is
currently at a monthly pace of $85 billion.
Analysts also attributed the mild increase in speculative
longs to buying in a bid to close short positions.
The amount of bullish, or long, positions in 10-year
Treasury futures from speculators exceeded bearish, or short,
positions by 33,011 contracts on June 25.
There were 31,229 speculative net longs in 10-year note
futures a week ago.
On Friday, 10-year T-note futures on the Chicago Board of
Trade for September delivery closed down 5/32 at
126-14/32, while the yield on cash 10-year Treasury notes
ended up nearly 2 basis points to 2.491 percent,
which was below its 22-month high of 2.667 percent set on Monday
according to Reuters data.
The U.S. Treasuries market finished the day on down note,
marking its worst quarter in 2-1/2 years.
Speculators also raised bullish bets on five-year Treasury
note futures, even after five-year debt suffered its worst
weekly loss in about four years the previous week, according to
the latest weekly CFTC Commitments of Traders figures.
Their long trades in five-year Treasury note futures
exceeded short positions by 134,153 contracts, up 73,814 from
the prior week.
The net shorts in ultra-long T-bond futures shrank by 15,044
contracts to 12,951 in the latest week.
On the other hand, speculators added to their net shorts in
30-year bond futures by 29,328 contracts on Tuesday to
Speculators' short positions in two-year T-note futures
exceeded their longs by 9,812 contracts on Tuesday. A
week earlier, they held 25,489 more longs in two-year T-notes