September 13, 2019 / 8:28 PM / 3 months ago

UPDATE 1-Speculators pared bearish U.S. bond bets before market sell-off

 (Adds background, details on latest data)
    Sept 13 (Reuters) - Hedge funds and other speculators pared
their bearish bond bets earlier this week at the start of
biggest U.S. bond market sell-off in at least three years,
government data released on Friday showed.
    U.S. bond yields soared this week as investors around the
world rolled back their safe-haven bond holdings because of
diminished U.S.-China trade tensions, heavy domestic debt supply
and expectations of fiscal spending from Germany.
    Treasury two-year and 10-year yields
reached six-week highs on Friday, while 30-year yields
 increased to five-week peaks.
    On the week, 10-year yields surged 35 basis points for their
steepest weekly increase since June 2013.
    The amount of speculators' bearish, or short, positions in
10-year Treasury futures exceeded bullish, or long, positions by
300,433 contracts on Sept. 10, according to Commodity Futures
Trading Commission data released on Friday. 
    This was the lowest level of net shorts since July 9.
    A week earlier, speculators held 377,867 net short positions
in 10-year T-note futures, according to the CFTC's
latest Commitments of Traders data.
    Hedge funds' net shorts in 10-year T-notes declined to
893,603 contracts on Tuesday, down from prior week's 928,219.
    Among other Treasury futures, speculative net shorts in
two-year T-notes fell by 29,928 contracts to 143,259 contracts,
while speculative net shorts in ultra bond futures slipped 4,326
contracts to 301,276.
    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) 
        10 Sep 2019       Prior week
        week           
 Long         986,770        936,929
 Short      1,130,029      1,110,126
 Net         -143,259       -173,197
 
U.S. 5-year T-notes (Contracts of $100,000) 
        10 Sep 2019       Prior week
        week           
 Long         734,459        742,815
 Short        832,345        875,259
 Net          -97,886       -132,444
 
U.S. 10-year T-notes (Contracts of $100,000) 
        10 Sep 2019       Prior week
        week           
 Long         623,170        587,813
 Short        923,603        965,680
 Net         -300,433       -377,867
 
U.S. T-bonds (Contracts of $100,000) 
        10 Sep 2019       Prior week
        week           
 Long         138,103        133,023
 Short        189,846        200,266
 Net          -51,743        -67,243
 
U.S. Ultra T-bonds (Contracts of $100,000) 
        10 Sep 2019       Prior week
        week           
 Long         114,611        108,685
 Short        415,887        414,287
 Net         -301,276       -305,602
 Eurodollar (Contracts of $1,000,000) 
        10 Sep 2019       Prior week
        week           
 Long       3,407,108      3,414,545
 Short      1,145,914      1,083,116
 Net        2,261,194      2,331,429
 Fed funds (Contracts of $1,000,000) 
        10 Sep 2019       Prior week
        week           
 Long         389,826        288,543
 Short        273,954        305,213
 Net          115,872        -16,670
 
 (Reporting by Richard Leong; Editing by David Gregorio)
  
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