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Large bond speculators increased their bearish net positions in the 10-Year Note futures markets this week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.
The non-commercial futures contracts of 10-Year Note futures, traded by large speculators and hedge funds, totaled a net position of -52,920 contracts in the data reported through Tuesday, June 2nd. This was a weekly change of -14,864 net contracts from the previous week which had a total of -38,056 net contracts.
The week’s net position was the result of the gross bullish position (longs) increasing by 19,225 contracts (to a weekly total of 677,851 contracts) while the gross bearish position (shorts) rose by 34,089 contracts for the week (to a total of 730,771 contracts).
10-Year Speculators raised their bearish bets for the first time in the past three weeks. The previous two weeks had seen the speculative position remove +113,431 contracts from the bearish level and brought the overall spec standing to the least bearish level since April. Overall, the current speculator level is pretty much at a neutral level in the bigger picture while the 10-Year Note price remains elevated in a historical context.
The commercial traders' position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of 18,498 contracts on the week. This was a weekly boost of 25,292 contracts from the total net of -6,794 contracts reported the previous week.
Over the same weekly reporting time-frame, from Tuesday to Tuesday, the 10-Year Note Futures (Front Month) closed at approximately $139.18 which was an uptick of $0.23 from the previous close of $138.95, according to unofficial market data.
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