Commodity Futures Trading Commission (CFTC) data published on Tuesday shows that speculators held the largest net short position in three-month 'SOFR' rate futures since September, and the biggest net short 10-year Treasuries futures position since 2018.
While they trimmed their net short 2-year Treasuries futures position, it was only a reduction of around 5% from the record short a couple of weeks earlier.
They trimmed their two-year futures net short to 656,575 contracts - two weeks prior they were net short 696,686 contracts, a record.
chartA short position is essentially a wager that an asset's price will fall, and a long position is a bet it will rise.
In bonds and interest rates, yields and implied rates fall when prices rise, and move up when prices fall.