Treasury Futures Positions Reach New Extremes Before Election
- Asset managers and speculators set opposite net positions
- Open interest in U.S. 30-year bond contract has soared
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Positioning in futures linked to longer-dated Treasuries has reached extreme levels in the run-up to the U.S. election on Nov. 3.
The long position that asset managers have built in the Treasury bond future -- a contract that’s tied to debt maturing in 15-to-25 years -- has increased to be the largest on record, according to Commodity Futures Trading Commission data for the period through Oct. 13. Meanwhile leveraged funds had the biggest-ever net short. Open interest in the product -- the number of contracts in which all users had positions -- stood at 1.2 million, short of its February high but above the highest level on record until then.