Bullish US Treasury futures bets grow in week-CFTC

NEW YORK, Oct 22 (BestGrowthStock) – Speculative bullish bets in
U.S. 10-year Treasury futures rose to a fresh two-year high in
the latest week on expectations the Federal Reserve would
conduct further policy easing to help the economy, data
released on Friday showed.

The Commodity Futures Trading Commission said
speculative traders raised their “long” bets on 10-year T-notes
(TYc1: ) to 259,147 contracts on Tuesday, up 2,706 from last
week.

This level of bets that T-note futures will rise was the
highest since it was 260,936 on Oct 10, 2008.

On the other hand, speculative “short” bets that T-note
futures will fall slipped by 8,893 on the week to 191,800
contracts. See (1CFTC11: )

Net long positions in 10-year T-notes (0#TY:: ), which gauge
speculators’ long bets in T-notes over short ones, increased to
67,347 on Tuesday from 55,748 a week earlier.

This was the most net longs since Nov. 25, 2008, when they
were 74,489.

Traders widely expect the Fed will announce a second round
of large-scale bond purchases after its Nov. 2-3 meeting. It
initially adopted this unconventional policy tool in late 2008
during the height of the global credit crisis.

Citigroup analysts wrote in research report on Friday that
the U.S. central bank will likely announce an initial
commitment to buy $500 billion to $700 billion in bonds after
its November meeting, at a monthly clip of $100 billion.

The analysts said the bond market has largely priced in
such a scenario outlined in their report.

The Dec T-note contract (TYZ0: ) ended down 7/32 at 126-14/32
late Friday, while the yield on the cash 10-year U.S.
government note (US10YT=RR: ) rose 2 basis points to 2.56
percent. For more, see [US/]
(Reporting by Richard Leong; Editing by Kenneth Barry)

Bullish US Treasury futures bets grow in week-CFTC