22 Dec 2014
Bearish bets on the US 10-yr treasury reach a 4-year high - CFTC
FXStreet (Mumbai) - The Commodity Futures Trading Commission (CFTC) released for the week ended Dec. 16 showed traders added to their overall bearish bets on the US 10-yr treasury notes, taking the cumulative bearish bets at a 4-year high.
For the week ended Dec. 16, the non-commercial futures contracts of the 10-year treasury notes, primarily traded by large speculators and hedge funds, totaled a net position of -258,250 contracts, which is a weekly decline of 56,915 contracts, from the previous week’s total of -201,335 net contracts. Contrary to the bearish bets on the treasuries, the yield on the 10-Year treasury note declined from 2.22% to 2.07% during the reporting period.
The rise in bearish bets may have been due to the widespread belief that the Federal Reserve (Fed) at its Dec. 17 meet, shall indicate a sooner-than-expected interest rate hike in the US. The 10-yr yield currently trades at 2.172%; marginally above the 5-DMA located at 2.17%.
10-yr Treasury yield Technical Levels
The yield has an immediate support located at 2.17% (5-DMA), under which losses could be extended to 2.136% (10-DMA). Meanwhile, resistance is seen at 2.20% and 2.225% respectively.
For the week ended Dec. 16, the non-commercial futures contracts of the 10-year treasury notes, primarily traded by large speculators and hedge funds, totaled a net position of -258,250 contracts, which is a weekly decline of 56,915 contracts, from the previous week’s total of -201,335 net contracts. Contrary to the bearish bets on the treasuries, the yield on the 10-Year treasury note declined from 2.22% to 2.07% during the reporting period.
The rise in bearish bets may have been due to the widespread belief that the Federal Reserve (Fed) at its Dec. 17 meet, shall indicate a sooner-than-expected interest rate hike in the US. The 10-yr yield currently trades at 2.172%; marginally above the 5-DMA located at 2.17%.
10-yr Treasury yield Technical Levels
The yield has an immediate support located at 2.17% (5-DMA), under which losses could be extended to 2.136% (10-DMA). Meanwhile, resistance is seen at 2.20% and 2.225% respectively.