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UPDATE 1-Speculative Eurodollar net longs post biggest drop since 2016 -CFTC

(Adds details on latest data) Sept 20 (Reuters) - Speculators slashed their net bullish positions in Eurodollar rates futures by the biggest total in over three years following a dramatic bond market sell-off and before the Federal Reserve's policy meeting this week, government data released on Friday showed. Speculative longs in Eurodollar futures exceeded speculative shorts in them by 1.891 million contracts on Sept. 17, down by 370,345 from the prior week, according to figures from the Commodity Futures Trading Commission. The drop marked the biggest weekly decline since a 412,380 fall in May 2016. Last week, the Treasuries market suffered its worst week in more than six years amid hopes for a U.S.-China trade deal and encouraging domestic data. Traders also dialed back their bets on an aggressive pace of rate decreases from the Fed, although they were convinced policymakers would deliver on a quarter point rate cut, which they did. The amount of speculators' bearish, or short positions, in 10-year Treasury futures exceeded bullish, or long positions, by 229,963 contracts on Sept 17. . A week earlier, speculators held 300,433 net short positions in 10-year T-note futures. 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) 17 Sep 2019 Prior week week Long 1,045,467 986,770 Short 1,205,002 1,130,029 Net -159,535 -143,259 U.S. 5-year T-notes (Contracts of $100,000) 17 Sep 2019 Prior week week Long 691,419 734,459 Short 856,796 832,345 Net -165,377 -97,886 U.S. 10-year T-notes (Contracts of $100,000) 17 Sep 2019 Prior week week Long 623,614 623,170 Short 853,577 923,603 Net -229,963 -300,433 U.S. T-bonds (Contracts of $100,000) 17 Sep 2019 Prior week week Long 132,120 138,103 Short 178,360 189,846 Net -46,240 -51,743 U.S. Ultra T-bonds (Contracts of $100,000) 17 Sep 2019 Prior week week Long 118,359 114,611 Short 412,068 415,887 Net -293,709 -301,276 Eurodollar (Contracts of $1,000,000) 17 Sep 2019 Prior week week Long 2,645,460 3,407,108 Short 754,611 1,145,914 Net 1,890,849 2,261,194 Fed funds (Contracts of $1,000,000) 17 Sep 2019 Prior week week Long 511,819 389,826 Short 318,824 273,954 Net 192,995 115,872 (Reporting by Richard Leong Editing by Tom Brown)