Net short bets against 30-year Treasury bond hit fresh high -CFTC

BY Reuters | TREASURY | 10/23/20 06:46 PM EDT

By Ira Iosebashvili

Oct 23 (Reuters) - Speculators? net bearish bets on 30-year Treasury bond futures grew to a record high in the latest week, data from the Commodity Futures Trading Commission showed on Friday, potentially reflecting expectations of higher yields on longer-dated U.S. government bonds.

The amount of speculators? bearish, or short, positions in 30-year Treasury futures exceeded bullish, or long, positions by 236,636 contracts on Oct. 20, a record, according to the CFTC?s latest Commitments of Traders data.

Net bearish bets stood at 221,140 in the previous week, the data showed.

Treasury yields, which move inversely to prices, have rallied since August, fueled by bets that the nascent U.S. economic recovery will continue with the help of an eventual fiscal stimulus deal and a possible breakthrough in the search for a vaccine against COVID-19.

(Reporting by Ira Iosebashvili Editing by Chris Reese)

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.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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