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10-Year Note Non-Commercial Speculator Positions:
Large bond speculators sharply cut back on 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 -53,036 contracts in the data reported through Tuesday March 31st. This was a weekly change of 158,993 net contracts from the previous week which had a total of -212,029 net contracts.
The week’s net position was the result of the gross bullish position (longs) going up by 23,339 contracts (to a weekly total of 506,947 contracts) while the gross bearish position (shorts) fell by -135,654 contracts for the week (to a total of 559,983 contracts).
10-Year Treasury speculators dropped their bearish bets for a second straight week and by the largest one-week amount in the past seventy-two weeks, dating back to January of 2018. The trimming of the speculator’s bearish position brings the current overall standing (-53,036 contracts) to it’s least bearish level since December of 2017 and basically to almost a neutral level. The 10-Year price action, meanwhile, has continued to remain strongly bid as a result of safe haven flows.
10-Year Note Commercial Positions:
The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of 7,156 contracts on the week. This was a weekly fall of -142,417 contracts from the total net of 149,573 contracts reported the previous week.
10-Year Note Futures:
Over the same weekly reporting time-frame, from Tuesday to Tuesday, the 10-Year Note Futures (Front Month) closed at approximately $138.68 which was a rise of $1.23 from the previous close of $137.45, according to unofficial market data.
*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) as well as the commercial traders (hedgers & traders for business purposes) were positioned in the futures markets.
The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators).
Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).
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