CBOT debt traders flip to long positions
4:19 PM
Many traders have held onto short positions on ideas that monetary policy tightening by the Federal Reserve will ultimately drive up long-term interest rates.
Instead, although the overnight fed funds rate is up 200 basis points since June 2004, 10-year yields are some 60 bps lower now than when the Fed started its tightening campaign.
Instead, although the overnight fed funds rate is up 200 basis points since June 2004, 10-year yields are some 60 bps lower now than when the Fed started its tightening campaign.
Large speculators, such as hedge funds, had a net long position in CBOT 10-year notes of 74,544 contracts as of Tuesday, compared with their net short of 126,874 contracts a week earlier.
Posted by OscarNOW
on 4:19 PM.
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