Aug 16 (Reuters) - Speculators raised their net short bets on five-year Treasuries to the largest on record in the latest week, while bearish bets on 10-year Treasury futures were the largest since January, according to data by the Commodity Futures Trading Commission on Friday.

Net short bets on five-year note futures grew to 1,695,072 contracts in the week ending Aug. 13, up from 1,688,076 the previous week.

Short bets on 10-year note futures rose to 860,243 contracts from 776,208, the data showed.

Bearish positions on interest rate sensitive two-year Treasury futures, meanwhile, fell to 1,104,606 contracts, from 1,105,211 the prior week.

Treasury yields have rebounded from more than one-year lows reached last week, when concerns mounted that the U.S. economy is rapidly weakening and due to a stock market rout caused in part by the unwind of popular dollar/yen carry trades.

Better economic data this week and hotter-than-expected shelter inflation in July has also reduced expectations that the Federal Reserve will cut interest rates by 50 basis points at its September meeting, with a 25 basis point cut now seen as more likely.

Other data showed that net short bets on U.S. bonds fell to 26,330 contracts from 57,855 and U.S. Long T-bonds short bets fell to 349,133 contracts from 376,662.

Below is a table of the speculative positions in Treasury futures on the Chicago Board of Trade in the latest week:

U.S. 2-year T-notes (Contracts of $200,000)

U.S. 5-year T-notes (Contracts of $100,000)

U.S. 10-year T-notes (Contracts of $100,000)

U.S. T-bonds (Contracts of $100,000)

U.S. Long T-bonds (Contracts of $100,000)

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https://www.reuters.com/markets/rates-bonds/short-bets-five-year-treasury-futures-largest-record-cftc-data-2024-08-16/