Open Positions of 10-year Treasury Futures Speculators and Institutions Are at the Lowest Level

The data from the Commodities Futures Trading Commission show that speculators and institutions have now reduced net-long positions of 10-year Treasury futures

Contents

The Smallest Gap in Action
What Was the Reason?

The Smallest Gap in Action

Speculators and institutional investors usually have opposite strategies. Some try to make money on price changes, while others hedge their risks in more reliable assets. Now, however, the strategies of these two groups seem to have found their balance.

According to the Commodity Futures Trading Commission, the number of open positions is currently at a minimum level. This may indicate that investors are uncertain about the market.

Trading Strategy

Source: The Tradable

Volatility (VIX) of S&P 500 (SPX) Is Quiet Now, but November Futures Show Market Hedging against Election Uncertainty

Investors fear the uncertainty of the election.

What Was the Reason?

On October 2, Goldman Sachs Group Inc. advised investors to cut US bonds 10-year relative to their two-year and 30-year counterparts by more than 10-year bonds.

Traders have placed direct bets on steepness, a scenario that has been strengthened as polls and betting areas indicate that the chances of ex-Vice-President Joe Biden to beat President Donald trump are improving and the chances of more stimulation have improved.

#CFTC #Futures #10-year futures

Saad Ullah E-mail Twitter Facebook

Saad is an engineer with more than a decade of experience in FMCG companies. He loves to write about innovative tech and blockchain.