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Bond Bears Experts at Bad Timing in Building Treasury Shorts

Treasury market bears who bet against bonds in December by the most in four years are proving to be experts at bad timing as government securities surge in January.

Short positions that gain when U.S. 10-year notes fall outnumbered longs by 261,282 contracts on the Chicago Board of Trade in the week ended Dec. 30, according to the Commodity Futures Trading Commission. That was the biggest wager against Treasuries since May 2010, and was set after the Federal Reserve dropped its pledge to keep interest rates low for a “considerable time.”