March 29, 2019 / 8:09 PM / 6 months ago

UPDATE 1-Speculators cut bearish Eurodollar bets to lowest since July 2016 -CFTC

 (Adds details, background)
    March 29 (Reuters) - Speculators scaled back their bearish
bets on Eurodollar futures to the lowest levels since July 2016
on expectations the Federal Reserve might lower short-term
interest rates to counter a slowing economy, U.S. data released
on Friday showed.
    Speculative net bearish or "short" positions on CME
Eurodollar futures declined for eight straight weeks to 306,262
contracts on March 26, the fewest since July 10, 2016.

    Disappointing U.S., Chinese and European economic data in
recent weeks have stoked fears about a global economic slowdown.
    Last week, the yields on benchmark 10-year Treasury notes
 fell below the interest rates on three-month U.S.
Treasury bills for the first time since 2007. 
    This yield curve inversion has preceded every U.S. recession
in the past 50 years.
    Some analysts and traders said an inverted yield has to
persist for some time to be an omen of an economic downturn.
    Late Friday, three-month T-bill rates and 10-year note
yields were nearly at parity at about 2.40 percent.
    Meanwhile, speculators' net bearish bets on U.S. 10-year
Treasury note futures rose modestly earlier this week as
economic worries stoked a safe-haven stampede into bonds,
according to the latest Commodity Futures Trading Commission
data.
    Their short positions in 10-year Treasury futures exceeded
bullish, or long, positions by 166,293 contracts on Tuesday,
according to the CFTC's latest Commitments of Traders data
.
    A week earlier, speculators held 163,974 net short positions
in 10-year T-note futures.
    On Thursday, 10-year Treasury yields touched 2.340 percent,
the lowest levels in about 15 months.
    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) 
        March 26,         Prior week
        2019 week      
 Long         786,736        750,346
 Short        940,750        876,565
 Net         -154,014       -126,219
 
U.S. 5-year T-notes (Contracts of $100,000) 
        March 26,         Prior week
        2019 week      
 Long         798,284        775,249
 Short        964,034        994,922
 Net         -165,750       -219,673
 
U.S. 10-year T-notes (Contracts of $100,000) 
        March 26,         Prior week
        2019 week      
 Long         699,752        704,564
 Short        866,045        868,538
 Net         -166,293       -163,974
 
U.S. T-bonds (Contracts of $100,000) 
        March 26,         Prior week
        2019 week      
 Long         172,189        148,440
 Short        190,144        178,658
 Net          -17,955        -30,218
 
U.S. Ultra T-bonds (Contracts of $100,000) 
        March 26,         Prior week
        2019 week      
 Long         103,644        117,351
 Short        403,706        394,393
 Net         -300,062       -277,042
 Eurodollar (Contracts of $1,000,000) 
        March 26,         Prior week
        2019 week      
 Long       1,296,522      1,115,585
 Short      1,602,784      1,541,696
 Net         -306,262       -426,111
 Fed funds (Contracts of $1,000,000) 
        March 26,         Prior week
        2019 week      
 Long         220,109        216,865
 Short        378,297        337,314
 Net         -158,188       -120,449
 
 (Reporting by Richard Leong
Editing by Leslie Adler and James Dalgleish)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below