The latest Commodity Futures Trading Commission (CFTC) figures show that speculators, especially leveraged funds, ramped up their short Treasuries positions in the week ending Oct. 31, most notably at the short end of the curve.
That is significantly larger than the peak combined net short position from 2019 of just over 4 million contracts, boosted by fresh record short positions in the two- and five-year space.
In October leveraged funds increased their net short position in two-year futures by 242,000 contracts to 1.6 million contracts, and by 193,000 contracts in five-year futures to 1.93 million.
They only grew their net short position in 10-year futures by 10,000 contracts, however.
But funds play Treasuries futures for other reasons, like relative value trades, and this year, the basis trade.
Persons:
Brendan McDermid, Javier Corominas, Treasuries, Jerome Powell, Jamie McGeever, Miral Fahmy, Jonathan Oatis
Organizations:
New York Stock Exchange, REUTERS, Rights, Futures Trading Commission, Regulators, Reuters, Oxford Economics, Treasury, Citi's, Thomson
Locations:
New York City, U.S, Rights ORLANDO , Florida, Citi's U.S