U.S. Markets close in 3 hrs 18 mins

Speculative U.S. 10-year T-note net shorts fall from record high -CFTC

* Speculative Eurodollar net shorts hit record high * Spec 5-year T-note net shorts most in two months * Spec 2-year T-note net shorts hit highest since June (New throughout, adds background, net shorts in other contracts) March 10 (Reuters) - Speculators scaled back their net bearish bets on U.S. 10-year Treasury note futures from a record high ahead of the February U.S. payrolls report, according to Commodity Futures Trading Commission data released on Friday.

Speculative net shorts in Eurodollar futures reached another record peak earlier this week on expectations the Federal Reserve would raise key U.S. short-term rates at its March 14-15 meeting, the CFTC's latest Commitments of Traders data showed.

Nets shorts by speculators in U.S. five-year T-note futures rose to their highest level in two months, while speculative net shorts in two-year T-notes jumped to their highest since last June.

The amount of speculators' bearish, or short, positions in 10-year Treasury futures exceeded bullish, or long, positions by 298,514 contracts on March 7, according to the latest data .

A week earlier, speculators held 409,659 net short positions in 10-year T-note futures, which was a record high.

Speculators likely reduced their bearish bets on 10-year T-notes to book profits following prior week's steep selloff due to hawkish rhetoric from a group of Fed officials on the possibility of a pending rate increase, analysts said.

On Friday, the Labor Department said nonfarm payrolls increased by 235,000 jobs last month, more than the 190,000 forecast among economists polled by Reuters.

U.S. 10-year T-note futures ended up 6/32 at 123 on Friday as the February hiring figure fell short of the most optimistic views.

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) 07 Mar 2017 Prior week week Long 217,300 263,282 Short 353,805 293,001 Net -136,505 -29,719 U.S. 5-year T-notes (Contracts of $100,000) 07 Mar 2017 Prior week week Long 313,665 376,450 Short 725,241 663,816 Net -411,576 -287,366 U.S. 10-year T-notes (Contracts of $100,000) 07 Mar 2017 Prior week week Long 527,862 472,169 Short 826,376 881,828 Net -298,514 -409,659 U.S. T-bonds (Contracts of $100,000) 07 Mar 2017 Prior week week Long 91,847 91,092 Short 134,673 112,956 Net -42,826 -21,864 U.S. Ultra T-bonds (Contracts of $100,000) 07 Mar 2017 Prior week week Long 53,041 56,880 Short 117,791 124,283 Net -64,750 -67,403 Eurodollar (Contracts of $1,000,000) 07 Mar 2017 Prior week week Long 413,948 393,581 Short 3,304,373 3,073,460 Net -2,890,425 -2,679,879 Fed funds 07 Mar 2017 Prior week week Long 120,998 197,687 Short 367,257 352,629 Net -246,259 -154,942 (Reporting by Richard Leong; Editing by Dan Grebler and David Gregorio)