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UPDATE 1-Speculative U.S. 10-year T-note net longs hit six-month low -CFTC
October 20, 2017 / 8:56 PM / 2 months ago

UPDATE 1-Speculative U.S. 10-year T-note net longs hit six-month low -CFTC

    * Spec net shorts in 2-year, 5-year T-notes hit record high
    * U.S. 2-year Treasury yield hits near nine-year peak

 (Adds background, details on latest data)
    Oct 20 (Reuters) - Speculators' net bullish bets on U.S.
10-year Treasury note futures fell to a six-month low on
expectations of further interest rate increases from the Federal
Reserve, according to Commodity Futures Trading Commission data
released on Friday.
    Bets on U.S. President Donald Trump possibly naming a
hawkish nominee to head the Fed also stoked a selloff in the
Treasuries market this week.
    The amount of speculators' bullish, or long, positions in
10-year Treasury futures exceeded bearish, or short, positions
by 106,291 contracts on Oct. 17, according to the CFTC's latest
Commitments of Traders data.
    That was the fewest net longs since speculators were net
short by 41,300 on April 18.
    A week earlier, speculators held 192,606 net long positions
in 10-year T-note futures.
    On Friday, the 10-year Treasury note yield
reached a two-week high of 2.392 percent as investors reduced
bond holdings on worries about more inflation and federal
borrowing after the U.S. Senate passed a budget resolution late
on Thursday.
    The Senate's move raised expectations the
Republican-controlled Congress Trump would be able to enact
their tax-cut package, which would widen the federal deficit by
up to $1.5 trillion over the next decade.
    On the other hand, the tax cut is expected to boost economic
growth, which would allow the U.S. central bank to raise
interest rates further.
    Two-year Treasury yields climbed to a near nine-year peak at
1.584 percent on Friday, Reuters data showed.
    Speculative net shorts on two-year T-notes rose for four
straight weeks to the record high of 312,453 contracts on
Tuesday.
    Speculators raised their net shorts in five-year Treasury
futures to 445,579, the most on record.
    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) 
        17 Oct 2017       Prior week
        week           
 Long         276,978        241,447
 Short        589,431        492,491
 Net         -312,453       -251,044
 
U.S. 5-year T-notes (Contracts of $100,000) 
        17 Oct 2017       Prior week
        week           
 Long         355,004        388,779
 Short        800,583        690,364
 Net         -445,579       -301,585
 
U.S. 10-year T-notes (Contracts of $100,000) 
        17 Oct 2017       Prior week
        week           
 Long         774,341        847,528
 Short        668,050        654,922
 Net          106,291        192,606
 
U.S. T-bonds (Contracts of $100,000) 
        17 Oct 2017       Prior week
        week           
 Long         184,195        172,775
 Short        133,220        145,202
 Net           50,975         27,573
 
U.S. Ultra T-bonds (Contracts of $100,000) 
        17 Oct 2017       Prior week
        week           
 Long          61,277         61,191
 Short        153,454        153,620
 Net          -92,177        -92,429
 Eurodollar (Contracts of $1,000,000) 
        17 Oct 2017       Prior week
        week           
 Long         948,024        913,569
 Short      3,170,922      3,018,168
 Net       -2,222,898     -2,104,599
 Fed funds (Contracts of $1,000,000) 
        17 Oct 2017       Prior week
        week           
 Long         105,199         79,145
 Short        166,795        203,937
 Net          -61,596       -124,792
 
 (Reporting by Richard Leong; Editing by Andrew Hay and Meredith
Mazzilli)
  

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