Speculative Net Short Position In Ten Year Futures Largest Since 2005

The speculative net short position in the Ten Year Note futures market is the second largest, only bested by the market position in March of 2005.

Last time net shorts were this high, interest rates rose

According to the Commodity Futures Trading Commission’s Commitment of Trader’s report, the net short position 59.62 billion, recently surging $17.23 billion.  The net short position in March of 2005 was $60.5 billion.  When this happened, interest rates rose and bond prices fell leading into a high point in 2006.

According to an investor note from the...