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Hedge Funds Drive Net Short Bias In Latest CFTC CoT

US TSY FUTURES
HomepageBond Market NewsBulletMarketsFixed Income Bullets

The latest CFTC CoT report showed non-commercial accounts extending net shorts in TU, FV, TY and WN futures.

  • Overall net shorts in FV futures hit new cycle extremes.
  • Elsewhere, non-commercial positioning in US futures moved back into net short territory after 3 weeks of fairly limited net long positioning.
  • UXY futures broke the wider trend and saw net shorts trimmed.
  • Hedge funds generally added to net short positions across the curve, although TY and WN saw some short cover from that investor cohort. They also flipped to net short positioning in SOFR futures for the first time since May ‘23.
  • The ‘hawkish cut’ from the ECB and Friday’s NFP report will have been welcomed by that investor group, with the details of this CoT report not capturing those events (cut off date was Tuesday 4 June).
  • A reminder that basis trades will skew futures positioning metrics.

Source: MNI - Market News/CFTC/Bloomberg

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The latest CFTC CoT report showed non-commercial accounts extending net shorts in TU, FV, TY and WN futures.

  • Overall net shorts in FV futures hit new cycle extremes.
  • Elsewhere, non-commercial positioning in US futures moved back into net short territory after 3 weeks of fairly limited net long positioning.
  • UXY futures broke the wider trend and saw net shorts trimmed.
  • Hedge funds generally added to net short positions across the curve, although TY and WN saw some short cover from that investor cohort. They also flipped to net short positioning in SOFR futures for the first time since May ‘23.
  • The ‘hawkish cut’ from the ECB and Friday’s NFP report will have been welcomed by that investor group, with the details of this CoT report not capturing those events (cut off date was Tuesday 4 June).
  • A reminder that basis trades will skew futures positioning metrics.

Source: MNI - Market News/CFTC/Bloomberg