Speculators boost U.S. 30-year T-bond net shorts to record high -CFTC

BY Reuters | TREASURY | 10/09/20 03:41 PM EDT

NEW YORK, Oct 9 (Reuters) - Speculators' net bearish bets on U.S. 30-year Treasury bond futures rose in the latest week to a record high, according to Commodity Futures Trading Commission data released on Friday.

The amount of speculators' bearish, or short, positions in 30-year Treasury futures exceeded bullish, or long, positions by 230,312 contracts on Oct. 6, a record high, according to the CFTC's latest Commitments of Traders data. (Reporting by Saqib Iqbal Ahmed; Editing by Leslie Adler)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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