U.S. Treasury 10-year note futures net short positions hit largest since February 2020 -CFTC

BY Reuters | TREASURY | 11/19/21 04:07 PM EST

NEW YORK, Nov 19 (Reuters) - Speculators' net bearish bets on U.S. 10-year Treasury note futures rose to their largest since February 2020, according to Commodity Futures Trading Commission data released on Friday.

Futures on U.S. 10 year notes showed net shorts of 294,141 contracts, the largest in about 21 months, based on CFTC data in the week ended Nov. 16. (Reporting by Gertrude Chavez-Dreyfuss 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.

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