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10-Year Note Non-Commercial Speculator Positions: Speculators raised bets for 3rd week
Large bond speculators added to their bullish net positions in the 10-Year Note futures markets again 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 43,187 contracts in the data reported through Tuesday July 7th. This was a weekly gain of 12,172 net contracts from the previous week which had a total of 31,015 net contracts.
The week’s net position was the result of the gross bullish position (longs) decreasing by -2,539 contracts (to a weekly total of 779,252 contracts) while the gross bearish position (shorts) declined by a larger amount of -14,711 contracts for the week (to a total of 736,065 contracts).
The 10-Year Note speculators continued to raise their net positions this week for a third straight week and for the sixth time in the past eight weeks. The bullish sentiment has now pushed the bullish position to the highest level since December 12th of 2017, a span of 134 weeks. The turnaround in speculator positions has been pretty remarkable as the net position was as high as -151,487 contracts on May 12th and as high as -251,113 contracts on March 17th before speculators started betting on a rise in the 10-Year Notes.
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 -68,452 contracts on the week. This was a weekly drop of -11,801 contracts from the total net of -56,651 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 $139.20 which was a boost of $0.03 from the previous close of $139.17, 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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