Sept 27 Speculators reduced net bearish bets on
U.S. 10-year Treasury note futures in the latest week, prompted
by worries about a possible government shutdown, according to
Commodity Futures Trading Commission data released on Friday.
The amount of speculators' bearish, or short, positions in
10-year Treasury note futures exceeded bullish, or long,
positions by 89,107 contracts on Sept. 24, according to the
CFTC's latest Commitments of Traders data.
A week ago, speculators held 126,026 net short positions in
10-year T-note futures, which was the most net shorts since May
U.S. 10-year Treasury note futures on the Chicago Board of
Trade for December delivery rose 7/32 in price on the day
at 126-10/32, their highest since Aug. 13.
In the cash market, the yield on 10-year Treasury notes
fell 2 basis points to 2.626 percent after earlier
hitting its lowest level in more than five weeks.
Investors shifted money into lower-risk government debt from
stocks in anticipation of a partial federal shutdown next week
due to the political gridlock over spending and abolishment of
The mood about bonds, however, remained bearish overall on
the view the Federal Reserve will shrink its bond-buying
stimulus program, which has held longer-dated Treasury yields.
Speculative net shorts in five-year Treasury note futures
fell to 124,065 contracts from last week's 139,477, which
was the most since January 2008.
Speculators' short positions in two-year T-note futures
exceeded longs by 19,178 contracts on Tuesday, compared
with a net short of 46,220 contracts last week, which was the
biggest net short since March 2012.
Net short ultra-long T-bond futures in the latest
week fell to 1,232 contracts on Tuesday from 6,115 contracts in
the prior week.
Meanwhile, speculators pared their net long in 30-year bond
futures to 6,700 contracts on Tuesday from 37,195
contracts a week ago, according to the latest weekly CFTC
Commitments of Traders figures.