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


Oct 25 (Reuters) - Speculators reduced net bearish bets on U.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 released on Friday.

The amount of speculators' bearish, or short, positions in 10-year Treasury futures exceeded bullish, or long, positions by 28,536 contracts on Oct. 1, according to the CFTC's latest Commitments of Traders data.

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

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

The Commitments of Traders data have been delayed due to a 16-day shutdown that ended late last week.

U.S. 10-year Treasury note futures on the Chicago Board of Trade for December delivery rose 6/32 in price on the day at 127-19/32, not far below their highest levels in four months set earlier this week.

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

In late September, investors were shifting money into lower-risk government debt from stocks in anticipation of a partial federal shutdown due to the political gridlock over spending 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 than the 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 week earlier, according to the latest weekly CFTC Commitments of Traders figures.

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