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U.S. Treasury 10-year, 5-year futures' net shorts slide before Fed rate hike -CFTC

    NEW YORK, June 17 (Reuters) - Speculators reduced bearish
bets on benchmark U.S. Treasury 10-year and five-year note
futures in the latest week, a day before the Federal Open Market
Committee (FOMC) announced a 75 basis-point interest rate hike,
Commodity Futures Trading Commission data showed on Friday.
    U.S. 10-year note futures' net shorts hit 205,529 contracts
 in the week ended June 14, the lowest since the
week of May 17. A week earlier, the 10-year note shorts amounted
to 266,187 contracts.
    U.S. five-year futures' net shorts, on the other hand,
reached 191,071 contracts, the smallest net short
since May 24, data showed.
    Wednesday's interest rate increase was the largest rise in
the nearly three decades and came in the wake of a
hotter-than-expected U.S. inflation report last Friday.
    Investors are expecting more aggressive moves from the Fed.
Fed funds futures on Friday were pricing in a 44.6% chance that
the fed funds rate will reach 3.5% by the end of the year, from
the current 1.58% level, according to the CME's FedWatch. That
probability was less than 1% a week ago.
    Below is a table of the speculative positions in Treasury
futures on the Chicago Board of Trade and in Eurodollar futures
on the Chicago Mercantile Exchange in the latest week:

 U.S. 2-year T-notes (Contracts of $200,000)
        14 Jun 2022       Prior week
        week
 Long         236,115        200,307
 Short        396,537        370,796
 Net         -160,422       -170,489

U.S. 5-year T-notes (Contracts of $100,000)
        14 Jun 2022       Prior week
        week
 Long         374,601        359,715
 Short        565,672        582,262
 Net         -191,071       -222,547

U.S. 10-year T-notes (Contracts of $100,000)
        14 Jun 2022       Prior week
        week
 Long         253,485        195,120
 Short        459,014        461,307
 Net         -205,529       -266,187

U.S. T-bonds (Contracts of $100,000)
        14 Jun 2022       Prior week
        week
 Long         102,957        112,838
 Short        132,357        107,875
 Net          -29,400          4,963

U.S. Ultra T-bonds (Contracts of $100,000)
        14 Jun 2022       Prior week
        week
 Long          41,147         42,957
 Short        382,748        357,930
 Net         -341,601       -314,973
 Eurodollar (Contracts of $1,000,000)
        14 Jun 2022       Prior week
        week
 Long         651,750        367,476
 Short      2,506,442      3,013,978
 Net       -1,854,692     -2,646,502
 Fed funds (Contracts of $1,000,000)
        14 Jun 2022       Prior week
        week
 Long         221,596        149,853
 Short        110,665         95,620
 Net          110,931         54,233

 (Reporting by Gertrude Chavez-Dreyfuss; editing by Jonathan
Oatis and David Gregorio)

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