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UPDATE 1-Speculators bet on higher U.S. rates, yields after Yellen -CFTC
September 29, 2017 / 8:26 PM / 24 days ago

UPDATE 1-Speculators bet on higher U.S. rates, yields after Yellen -CFTC

 (Recasts with details on latest data)
    Sept 29 (Reuters) - Speculators raised their bets on higher
U.S. bond yields and short-term rates earlier this week
following remarks from Federal Reserve Chair Janet Yellen,
according to Commodity Futures Trading Commission data released
on Friday. 
    On Tuesday, Yellen said the U.S. central bank needs to raise
rates gradually despite broad uncertainty about the path of
inflation, which has remained below the Fed's 2-percent goal.

    The bond market sold off this week on Yellen's remarks and
concerns about the threat of a bigger federal deficit stemming
from U.S. President Donald Trump's tax plan.
    On Thursday, the yield on the benchmark 10-year Treasury
note reached an 11-week high at 2.359 percent, while
the two-year yield hit a near nine-year peak at 1.499
percent, Reuters data showed.
    The amount of speculators' bullish, or long, positions in
10-year Treasury futures exceeded bearish, or short, positions
by 256,626 contracts on Tuesday, fewer than the 270,120 net
longs a week earlier, according to the CFTC's latest Commitments
of Traders data,.
    Speculative net shorts in two-year Treasury futures almost
doubled to 182,897 contracts on Tuesday, which were the most net
shorts since Aug. 1.
    Speculators' net bearish or short bets on Eurodollar futures
grew to 1.694 million contracts on Tuesday, the highest level
since June 18, but their net shorts in federal funds futures
shrank to 141,278 contracts, the fewest since June 15. 
    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) 
        26 Sep 2017       Prior week
        week           
 Long         281,175        262,220
 Short        464,072        361,607
 Net         -182,897        -99,387
 
U.S. 5-year T-notes (Contracts of $100,000) 
        26 Sep 2017       Prior week
        week           
 Long         425,387        450,808
 Short        653,661        661,671
 Net         -228,274       -210,863
 
U.S. 10-year T-notes (Contracts of $100,000) 
        26 Sep 2017       Prior week
        week           
 Long         893,344        925,297
 Short        636,718        655,177
 Net          256,626        270,120
 
U.S. T-bonds (Contracts of $100,000) 
        26 Sep 2017       Prior week
        week           
 Long         183,498        178,726
 Short        130,588        120,603
 Net           52,910         58,123
 
U.S. Ultra T-bonds (Contracts of $100,000) 
        26 Sep 2017       Prior week
        week           
 Long          54,836         57,786
 Short        153,564        145,625
 Net          -98,728        -87,839
 Eurodollar (Contracts of $1,000,000) 
        26 Sep 2017       Prior week
        week           
 Long         877,915        970,521
 Short      2,572,191      2,417,034
 Net       -1,694,276     -1,446,513
 Fed funds (Contracts of $1,000,000) 
        26 Sep 2017       Prior week
        week           
 Long          81,312         63,370
 Short        222,590        235,934
 Net         -141,278       -172,564
 
 (Reporting by Richard Leong; editing by Diane Craft and Tom
Brown)
  

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