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UPDATE 1-Speculators slash U.S. 10-year note bets after jobs data-CFTC
May 10, 2013 / 8:27 PM / in 5 years

UPDATE 1-Speculators slash U.S. 10-year note bets after jobs data-CFTC

* Net spec 10-year Treasuries longs fall to lowest since March

* Speculators cut long positions across all T-note futures

* Data on T-note net longs likely to show further fall next week

NEW YORK, May 10 (Reuters) - Speculators pared their net bullish bets on U.S. 10-year Treasury note futures in the latest week after a stronger-than-expected report on April U.S. payrolls reduced the likelihood of a spring economic slowdown, according to Commodity Futures Trading Commission data released on Friday.

Bullish bets on U.S. Treasuries fell this week on pressure from $72 billion in debt supply tied to the government’s May refunding. They declined further as a deterioration of the yen against the dollar and other major currencies spurred rethinking about global interest rates and selling in Treasuries.

Net longs in Treasuries were halved in the latest week to $14.0 billion from $30.7 billion the prior week, TD Securities interest rate strategist Gennadiy Goldberg wrote in a note on the latest CFTC data.

The amount of bullish, or long, positions in 10-year Treasury futures from speculators exceeded bearish or short positions by 94,088 contracts to 37,956 on May 7, which was the lowest level since mid-March, according to the CFTC’s latest Commitments of Traders data.

There were 132,044 more longs in 10-year note futures than shorts a week earlier.

June 10-year Treasury futures fell 19/32 to 132-3/32, while the yield on cash 10-year Treasury notes rose to its highest level since late March. The 10-year yield touched 1.928 percent before easing to 1.8930 percent late Friday, according to Reuters data.

In the foreign exchange market, the yen fell to a 4-1/2-year low against the dollar after data showed Japanese investors were buying more foreign stocks and bonds in reaction to the Bank of Japan’s $1.4 trillion stimulus plan aimed at holding down long-term borrowing costs.

Speculators pared bets across all Treasury maturities in the latest week, according to the latest weekly CFTC Commitments of Traders figures.

Speculative long positions in two-year T-note futures fell by 3,205 contracts to 43,426 on Tuesday.

Speculative long trades in five-year Treasury note futures exceeded short positions by 155,181 contracts, 28,322 lower than the prior week.

Among longer maturities, speculators reduced their net short positions in 30-year bond futures to 7,489 contracts on Tuesday, down 21,564 contracts from a week ago.

The net shorts in “ultra” long T-bond futures grew to 17,035 in the latest week, 3,819 more contracts than the previous week .

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