November 2, 2018 / 8:33 PM / 9 months ago

UPDATE 2-Speculative U.S. 10-year T-note net shorts fall to lowest since July -CFTC

    * Speculators cut 5-year T-note net shorts by record sum
    * Asset managers build 10-year T-note net longs to record
    * Speculative ultra bond net shorts hit all-time peak

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    Nov 2 (Reuters) - Speculators' net bearish bets on U.S.
10-year Treasury note futures fell to their lowest level since
July earlier this week, ahead of the release of the government's
October jobs report, according to Commodity Futures Trading
Commission data released on Friday.
    The amount of speculators' bearish, or short, positions in
10-year Treasury futures exceeded bullish, or long, positions by
502,839 contracts on Oct. 30, according to the CFTC's latest
Commitments of Traders data.
    This was fewest net shorts in 10-year T-notes since July 17.
    A week earlier, speculators held 544,033 net short positions
in 10-year T-note futures.
    On Friday, the government said U.S. employers added 250,000
workers last month, more than market expectations, while wages
posted their biggest annual increase in 9-1/2 years.

    The upbeat labor figures spurred bets on rising inflation
and more interest rate increases from the Federal Reserve. 
    The yield on 10-year Treasury notes reached
three-week high at 3.222 percent, just short of the 7-1/2 year
peak of 3.261 percent reached on Oct. 9, while the 30-year yield
 touched a four-plus year high at 3.461 percent.
    By investor groups, asset managers' net longs in 10-year
T-notes grew to a record high at 1.165 million contracts, while
dealers' net shorts increased to an all-time peak at 327,270
    Hedge funds' net shorts in 10-year T-notes rose to a
four-week peak at 867,930. 
    Among other T-note contracts, speculators slashed their net
shorts in five-year futures by 235,388 contracts, which was a
record amount earlier this week. Their five-year T-note net
shorts fell to 538,251, the lowest since June 19.
    Speculative net shorts in ultra bond futures reached an
all-time peak at 250,125 contracts on Tuesday. 
    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) 
        Oct. 30, 2018     Prior week
 Long         491,061        493,614
 Short        813,564        810,368
 Net         -322,503       -316,754
U.S. 5-year T-notes (Contracts of $100,000) 
        Oct. 30, 2018     Prior week
 Long         598,305        609,829
 Short      1,136,556      1,383,468
 Net         -538,251       -773,639
U.S. 10-year T-notes (Contracts of $100,000) 
        Oct. 30, 2018     Prior week
 Long         579,889        592,547
 Short      1,082,728      1,136,580
 Net         -502,839       -544,033
U.S. T-bonds (Contracts of $100,000) 
        Oct. 30, 2018     Prior week
 Long         103,175        129,156
 Short        185,186        216,971
 Net          -82,011        -87,815
U.S. Ultra T-bonds (Contracts of $100,000) 
        Oct. 30, 2018     Prior week
 Long         100,638         95,466
 Short        350,763        334,951
 Net         -250,125       -239,485
 Eurodollar (Contracts of $1,000,000) 
        Oct. 30, 2018     Prior week
 Long       1,015,457      1,104,616
 Short      3,529,581      3,681,209
 Net       -2,514,124     -2,576,593
 Fed funds (Contracts of $1,000,000) 
        Oct. 30, 2018     Prior week
 Long         168,742        170,245
 Short        238,565        227,005
 Net          -69,823        -56,760
 (Reporting by Richard Leong
Editing by Leslie Adler and Diane Craft)
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