Hedge Funds Bullish on 10-Year Treasuries for First Time in Year

Hedge-fund managers and other large speculators are bullish on 10-year note futures for the first time in a year, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will increase, outnumbered short positions by 7,940 contracts on the Chicago Board of Trade, as of Aug. 26. A week earlier net-short positions, or bets on declines, totaled 43,534 contracts, the Washington-based commission said in its Commitments of Traders report.

Benchmark 10-year notes were lower in today’s trading, with the 2.375 percent securities maturing in August 2024 note down 2/32, or 63 cents per $1,000 face amount, to 100 1/4, according to Bloomberg Bond Trader prices. The yield rose one basis point, or 0.01 percentage point, to 2.35 percent. The benchmark notes rallied this week, with the yield reaching the lowest level since Aug. 15.

Ten-year note futures rose this week, increasing 13/32 to 126 9/32.

Each Friday the CFTC publishes aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors, as well as commercial companies that buy or sell futures to protect against price moves. Analysts and investors follow changes in speculators’ positions because such transactions may reflect an expectation of a change in prices.

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