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UPDATE 1-Speculative U.S. Eurodollar, 10-year T-notes net shorts grow -CFTC
December 9, 2016 / 9:18 PM / a year ago

UPDATE 1-Speculative U.S. Eurodollar, 10-year T-notes net shorts grow -CFTC

* Speculative 10-year T-note net shorts highest in 11 months
    * Speculative Eurodollar net shorts hit record high

 (Adds details on Eurodollar futures net shorts)
    Dec 9 (Reuters) - Speculators' net bearish bets on U.S.
10-year Treasury note futures rose to their highest since early
January, while their net bearish bets on Eurodollar hit record
peak for a second week, Commodity Futures Trading Commission
data released on Friday showed. 
    Speculators piled on bets that longer-dated U.S. government
debt prices will fall further on the view that inflation would
accelerate from possible big tax cuts and federal spending under
a Trump administration. President-elect Donald Trump takes
office on Jan. 20.
    The amount of speculators' bearish, or short, positions in
10-year Treasury futures exceeded bullish, or long, positions by
228,604 contracts on Dec. 6, according to the CFTC's latest
Commitments of Traders data.
    A week earlier, speculators held 96,267 net short positions
in 10-year T-note futures.
    Speculators raised their net shorts after benchmark 10-year
Treasury yield rose to 2.492 percent on Dec. 1,
which was a near 1-1/2 year peak, according to Reuters data.
    By investor categories, asset managers trimmed their net
longs in 10-year T-notes by 12,962 contracts to 146,542, while
leveraged funds reduced their net shorts by 52,069 to 46,644.
    Bond dealers added to their 10-year T-note net shorts by 159
to 125,000 contracts.
    Meanwhile, speculators ratcheted up their net short
positions in Eurodollar futures based on growing certainty the
Federal Reserve would raise short-term U.S. interest rates by a
quarter point at its policy meeting next week. 
    Net shorts in Eurodollar futures grew to a record high of
2.238 million contracts from 2.140 million the previous week.
    By investor categories, asset managers increased their net
shorts in Eurodollar by 122,459 contracts to 1.724 million, but
bond dealers raised their net longs by 81,620 to 3.864 million.
    Leveraged funds trimmed their Eurodollar net shorts by 5,870
to 1.678 million contracts.
    Below is a table of the speculative positions in Treasury
futures on the Chicago Board of Trade and in Eurodollar futures
on the Chicago Mercantile Exchange in the latest week:
 U.S. 2-year T-notes (Contracts of $200,000) 
        06 Dec 2016       Prior week
        week           
 Long         196,880        184,060
 Short        210,632        197,522
 Net          -13,752        -13,462
 
U.S. 5-year T-notes (Contracts of $100,000) 
        06 Dec 2016       Prior week
        week           
 Long         316,796        339,472
 Short        606,522        642,972
 Net         -289,726       -303,500
 
U.S. 10-year T-notes (Contracts of $100,000) 
        06 Dec 2016       Prior week
        week           
 Long         482,481        519,109
 Short        711,085        615,376
 Net         -228,604        -96,267
 
U.S. T-bonds (Contracts of $100,000) 
        06 Dec 2016       Prior week
        week           
 Long          76,882         85,380
 Short        120,473        109,695
 Net          -43,591        -24,315
 
U.S. Ultra T-bonds (Contracts of $100,000) 
        06 Dec 2016       Prior week
        week           
 Long          57,418         50,166
 Short        124,585        127,721
 Net          -67,167        -77,555
 Eurodollar (Contracts of $1,000,000) 
        06 Dec 2016       Prior week
        week           
 Long         559,543        586,567
 Short      2,798,426      2,727,027
 Net       -2,238,883     -2,140,460
 Fed funds 
        06 Dec 2016       Prior week
        week           
 Long          84,297         76,007
 Short        143,538        131,592
 Net          -59,241        -55,585
 
 (Reporting by Richard Leong; Editing by James Dalgleish and
Jonathan Oatis)

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