Speculators pare bearish bets on U.S. 10-year T-note futures-CFTC

Reuters

Oct 25 (Reuters) - Speculators reduced net bearish bets onU.S. 10-year Treasury note futures in early October, as the U.S.government headed into its first partial shutdown in 17 years,according to Commodity Futures Trading Commission data releasedon Friday.

The amount of speculators' bearish, or short, positions in10-year Treasury futures exceeded bullish, or long, positions by28,536 contracts on Oct. 1, according to the CFTC's latestCommitments of Traders data.

Net shorts in 10-year T-note futures fell to their lowestlevel since mid-August.

A week earlier, speculators held 89,107 net short positionsin 10-year T-note futures.

The Commitments of Traders data have been delayed due to a16-day shutdown that ended late last week.

U.S. 10-year Treasury note futures on the Chicago Board ofTrade for December delivery rose 6/32 in price on the dayat 127-19/32, not far below their highest levels in four monthsset earlier this week.

In the cash market, the yield on 10-year Treasury notes fell about 2 basis points to 2.505 percent, close toa three-month low recorded earlier this week in the wake of adisappointing September jobs report.

In late September, investors were shifting money intolower-risk government debt from stocks in anticipation of apartial federal shutdown due to the political gridlock overspending and abolishment of healthcare reform.

Speculative net shorts in five-year Treasury note futures grew marginally by 278 contracts to 124,343 on Oct. 1. .

Speculators' short positions in two-year T-note futures exceeded longs by 5,670 contracts on Oct. 1, fewer thanthe 19,178 net shorts a week earlier.

Speculators raised their net long in 30-year bond futures to 10,106 contracts on Oct. 1, up 3,406 from a weekearlier, according to the latest weekly CFTC Commitments ofTraders figures.

Speculative longs in ultra-long T-bond futures exceeded shorts by 2,399 contracts on Oct. 1, compared with anet short of 1,232 contracts a week earlier.

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