Speculators raise bearish bets on two-, 10-year Treasury futures

BY Reuters | TREASURY | 05/20/22 03:52 PM EDT
       May 20 (Reuters) - Speculators raised their bearish bets on
two- and 10-year Treasury note futures in the latest week, with
shorts on two-year notes rising to the highest level since July,
Commodity Futures Trading Commission (CFTC) data showed on
Friday.
    Net shorts on U.S. two-year note futures rose
to 134,637 in the week ending May 17, the most since July 6,
from 126,829 the previous week. Shorts on 10-year note futures
 also increased, to 160,091, the most since April
19, from 85,972.
    Bearish bets on five-year note futures fell to
260,224 in the latest week, the fewest since Feb. 15, from
325,674.

     U.S. 2-year T-notes (Contracts of $200,000)
        17 May 2022       Prior week
        week
 Long         307,951        275,153
 Short        442,588        401,982
 Net         -134,637       -126,829

U.S. 5-year T-notes (Contracts of $100,000)
        17 May 2022       Prior week
        week
 Long         298,615        291,527
 Short        558,839        617,201
 Net         -260,224       -325,674

U.S. 10-year T-notes (Contracts of $100,000)
        17 May 2022       Prior week
        week
 Long         314,613        406,123
 Short        474,704        492,095
 Net         -160,091        -85,972

U.S. T-bonds (Contracts of $100,000)
        17 May 2022       Prior week
        week
 Long         146,002        131,916
 Short        113,995        116,463
 Net           32,007         15,453

U.S. Ultra T-bonds (Contracts of $100,000)
        17 May 2022       Prior week
        week
 Long          48,033         45,084
 Short        342,592        356,597
 Net         -294,559       -311,513
 Eurodollar (Contracts of $1,000,000)
        17 May 2022       Prior week
        week
 Long         336,958        356,101
 Short      3,211,409      2,956,688
 Net       -2,874,451     -2,600,587
 Fed funds (Contracts of $1,000,000)
        17 May 2022       Prior week
        week
 Long         100,043        103,238
 Short         51,028         54,076
 Net           49,015         49,162

 (Reporting By Karen Brettell; Editing by Mark Porter)

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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