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CBOT debt traders flip to long positions

Many traders have held onto short positions on ideas that monetary policy tightening by the Federal Reserve will ultimately drive up long-term interest rates.
Instead, although the overnight fed funds rate is up 200 basis points since June 2004, 10-year yields are some 60 bps lower now than when the Fed started its tightening campaign.
Large speculators, such as hedge funds, had a net long position in CBOT 10-year notes of 74,544 contracts as of Tuesday, compared with their net short of 126,874 contracts a week earlier.

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