April 26, 2019 / 10:07 PM / a month ago

UPDATE 1-Speculators turn net long in Eurodollar for first time since 2016 -CFTC

 (Adds background, details on latest data)
    April 26 (Reuters) - Speculators turned bullish on
Eurodollar futures for the first time since July 2016 earlier
this week, amid expectations the Federal Reserve might lower
short-term U.S. interest rates by early 2020, government data
released on Friday showed.
    The margin of speculators' bullish, or long, positions in
Eurodollar contracts above their bearish, or short, bets totaled
42,234 contracts on Tuesday, marking the biggest such spread
since November 2015, according to Commodity Futures Trading
Commission data released on Friday.
    A week ago, speculators were net short in Eurodollar by
136,335 contracts.
    In March, the U.S. central bank signaled it would not raise
key lending rates in 2019. Disappointing data, especially on
U.S. inflation, have stoked speculation the Fed may even lower
borrowing costs to avert a recession.
    Meanwhile, speculators' net bearish bets on U.S. 10-year
Treasury note futures rose to their highest in about four months
earlier this week.
    Their net short positions in 10-year Treasury futures rose
to 323,791 contracts, up from 275,650 a week earlier, according
to the CFTC's latest Commitments of Traders data.

    About 1-1/2 weeks ago, benchmark 10-year Treasury yields
 touched a near one-month peak at 2.614% on optimism
about U.S.-China trade and upbeat data on China.  
    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) 
        23 Apr 2019       Prior week
        week           
 Long         938,097        862,416
 Short      1,068,943      1,034,038
 Net         -130,846       -171,622
 
U.S. 5-year T-notes (Contracts of $100,000) 
        23 Apr 2019       Prior week
        week           
 Long         860,858        830,900
 Short        907,680        893,811
 Net          -46,822        -62,911
 
U.S. 10-year T-notes (Contracts of $100,000) 
        23 Apr 2019       Prior week
        week           
 Long         585,339        620,384
 Short        909,130        896,034
 Net         -323,791       -275,650
 
U.S. T-bonds (Contracts of $100,000) 
        23 Apr 2019       Prior week
        week           
 Long         146,257        156,399
 Short        186,302        180,988
 Net          -40,045        -24,589
 
U.S. Ultra T-bonds (Contracts of $100,000) 
        23 Apr 2019       Prior week
        week           
 Long          99,818         99,623
 Short        422,649        413,038
 Net         -322,831       -313,415
 Eurodollar (Contracts of $1,000,000) 
        23 Apr 2019       Prior week
        week           
 Long       1,492,677      1,336,167
 Short      1,450,443      1,472,502
 Net           42,234       -136,335
 Fed funds (Contracts of $1,000,000) 
        23 Apr 2019       Prior week
        week           
 Long         155,924        183,446
 Short        356,008        365,726
 Net         -200,084       -182,280
 
 (Reporting by Richard Leong
Editing by James Dalgleish)
  
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