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UPDATE 1-Speculative Eurodollar net longs hit record high - CFTC

(Adds details on latest data, background) Sept 6 (Reuters) - Speculators raised their bets that U.S. interest rates will fall to an all-time peak earlier this week, amid signs of a softening global economy and U.S.-China trade tensions, Commodity Futures Trading Commission data released on Friday showed. The amount of speculators' bullish, or long, positions in CME Eurodollar rates futures exceeded their bearish, or short, positions by 2.331 million contracts on Sept. 3, according to the CFTC's latest Commitments of Traders figures. A week earlier, speculators held 2.127 million in net long positions in Eurodollar contracts. The interest rates market implies traders are positioning for the Federal Reserve to reduce key lending rates two more times by year-end. They would follow one in July, the Fed's first rate decrease since 2008. Fed policy-makers are scheduled to meet on Sept. 17-18. Among Treasury futures, speculative net short positions in 10-year T-notes rose to 377,867 contracts from 309,904 a week earlier, according to the CFTC's latest Commitments of Traders data. On Tuesday, benchmark U.S. 10-year yields fell to three-year lows due to news the domestic factory sector contracted for the first time since 2016 in August. Speculators also dialed back their net shorts in two-year T-notes for a second week to 173,197 contracts, the lowest amount since the week of June 18. They increased their net shorts in five-year T-notes to 132,444 contracts, the most since the week of June 4. 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) 03 Sep 2019 Prior week week Long 936,929 848,973 Short 1,110,126 1,120,035 Net -173,197 -271,062 U.S. 5-year T-notes (Contracts of $100,000) 03 Sep 2019 Prior week week Long 742,815 763,791 Short 875,259 868,959 Net -132,444 -105,168 U.S. 10-year T-notes (Contracts of $100,000) 03 Sep 2019 Prior week week Long 587,813 603,950 Short 965,680 913,854 Net -377,867 -309,904 U.S. T-bonds (Contracts of $100,000) 03 Sep 2019 Prior week week Long 133,023 132,449 Short 200,266 183,580 Net -67,243 -51,131 U.S. Ultra T-bonds (Contracts of $100,000) 03 Sep 2019 Prior week week Long 108,685 105,825 Short 414,287 409,451 Net -305,602 -303,626 Eurodollar (Contracts of $1,000,000) 03 Sep 2019 Prior week week Long 3,414,545 3,338,921 Short 1,083,116 1,211,569 Net 2,331,429 2,127,352 Fed funds (Contracts of $1,000,000) 03 Sep 2019 Prior week week Long 288,543 363,191 Short 305,213 408,782 Net -16,670 -45,591 (Reporting by Richard Leong; editing by Jonathan Oatis)