Most Overcrowded U.S. Futures Trade Gets More Congested: Chart

The most overcrowded bet in U.S. interest-rate markets is showing no signs of fatigue after speculators and leveraged funds added to short position last week -- equivalent to 2.1 million 10-year Treasury futures contracts -- according to CFTC positioning data. While asset managers trimmed short positions -- perhaps cashing in after Federal Reserve Chair Janet Yellen’s hawkish tones to the Senate Banking Panel -- they remain bearish on front-end rates. Eurodollar shorts at a record can be viewed as a sign the market expects her to say something similar when she next speaks March 3, less than two weeks before the central bank’s next policy meeting.

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