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UPDATE 1-Speculators pared bearish U.S. bond bets before market sell-off

(Adds background, details on latest data) Sept 13 (Reuters) - Hedge funds and other speculators pared their bearish bond bets earlier this week at the start of biggest U.S. bond market sell-off in at least three years, government data released on Friday showed. U.S. bond yields soared this week as investors around the world rolled back their safe-haven bond holdings because of diminished U.S.-China trade tensions, heavy domestic debt supply and expectations of fiscal spending from Germany. Treasury two-year and 10-year yields reached six-week highs on Friday, while 30-year yields increased to five-week peaks. On the week, 10-year yields surged 35 basis points for their steepest weekly increase since June 2013. The amount of speculators' bearish, or short, positions in 10-year Treasury futures exceeded bullish, or long, positions by 300,433 contracts on Sept. 10, according to Commodity Futures Trading Commission data released on Friday. This was the lowest level of net shorts since July 9. A week earlier, speculators held 377,867 net short positions in 10-year T-note futures, according to the CFTC's latest Commitments of Traders data. Hedge funds' net shorts in 10-year T-notes declined to 893,603 contracts on Tuesday, down from prior week's 928,219. Among other Treasury futures, speculative net shorts in two-year T-notes fell by 29,928 contracts to 143,259 contracts, while speculative net shorts in ultra bond futures slipped 4,326 contracts to 301,276. 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) 10 Sep 2019 Prior week week Long 986,770 936,929 Short 1,130,029 1,110,126 Net -143,259 -173,197 U.S. 5-year T-notes (Contracts of $100,000) 10 Sep 2019 Prior week week Long 734,459 742,815 Short 832,345 875,259 Net -97,886 -132,444 U.S. 10-year T-notes (Contracts of $100,000) 10 Sep 2019 Prior week week Long 623,170 587,813 Short 923,603 965,680 Net -300,433 -377,867 U.S. T-bonds (Contracts of $100,000) 10 Sep 2019 Prior week week Long 138,103 133,023 Short 189,846 200,266 Net -51,743 -67,243 U.S. Ultra T-bonds (Contracts of $100,000) 10 Sep 2019 Prior week week Long 114,611 108,685 Short 415,887 414,287 Net -301,276 -305,602 Eurodollar (Contracts of $1,000,000) 10 Sep 2019 Prior week week Long 3,407,108 3,414,545 Short 1,145,914 1,083,116 Net 2,261,194 2,331,429 Fed funds (Contracts of $1,000,000) 10 Sep 2019 Prior week week Long 389,826 288,543 Short 273,954 305,213 Net 115,872 -16,670 (Reporting by Richard Leong; Editing by David Gregorio)