10-Year Treasury Note Speculators Sharply Increase Bearish Positions
Zachary Storella | Apr 10, 2016 01:47AM ET
Weekly Large Trader COT Report: 10 Year US Treasury Note
CFTC Futures data shows speculators sharply boosted bearish bets
10 Year Treasury Note Non-Commercial Positions:
Large 10-year treasury note futures traders and speculators sharply added to their overall bearish last week as net positions have decreased for four straight weeks, 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 the 10-year treasury notes, primarily traded by large speculators and hedge funds, totaled a net position of -117,305 contracts in the data reported for April 5th. This was a weekly change of -100,442 net contracts from the previous week’s total of -16,863 net contracts that was recorded on March 29th.
For the week, the overall standing long positions in 10-year futures fell by -63,815 contracts and combined with a rise in the short positions by 36,627 contracts to register the overall net change of -100,442 contracts for the week.
The large speculator positions have fallen for four straight weeks and are now at the largest overall bearish position since November 3rd when positions equaled -164,264 contracts.
10 Year US Treasury Note Commercial Positions:
In the commercial positions for the 10-year note on the week, the commercials (hedgers or traders engaged in buying and selling for business purposes) strongly added to their overall bullish positions to a total net position of +163,793 contracts through April 5th. This is a weekly change of +91,931 contracts from the total net position of +71,862 contracts on March 29th.
IEF 7-10 Year Bond ETF:
Over the same weekly reporting time-frame, from Tuesday March 29th to Tuesday April 5th, the 7-10 Year Treasury Bond ETF gained from 110.09 to 110.71, according to ETF data for the iShares 7-10 Year Treasury Bond ETF (NYSE:IEF).
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*COT Report: The weekly commitment of traders report summarizes the total trader positions for open contracts in the futures trading 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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