UPDATE 1-Bearish bets on five-year Treasury futures smallest since July -CFTC data

Adds details, table

Sept 27 (Reuters) - Speculators cut their net short bets on five-year Treasuries to the smallest since July in the latest week, while bearish bets on interest rate-sensitive two-year notes rose, according to data from the Commodity Futures Trading Commission on Friday.

Net shorts on five-year note futures shrank to 1,554,432 contracts in the week ending on Sept. 24, from 1,593,860 1044601NNET the prior week.

Bearish positions on two-year Treasury futures 1042601NNET rose to 1,046,560 contracts, from 1,026,420. Net short bets on the benchmark 10-year note futures 1043602NNET fell to 1,025,278 contracts, from 1,094,026, the data showed.

Benchmark 10-year Treasury yields US10YT=RR have risen from a 15-month low since the Federal Reserve last week cut rates by 50 basis points, which was a larger reduction than some market participants had expected.

Two-year yields US2YT=RR, meanwhile, dropped to a two-year low this week as investors priced in additional Fed rate cuts. That has sent the closely watched yield curve between two-year and 10-year notes US2US10=TWEB to its steepest level since June 2022.

Other data showed that net short bets on U.S. bonds 1020601NNET increased to 152,582 contracts, the most since January, from 109,711.

U.S. Long T-bonds 1020604NNET short bets fell to 266,379 contracts from 274,303, data showed.

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)

	24 Sep 2024 week	Prior week
Long	730,128	637,164
Short	1,776,688	1,663,584
Net	-1,046,560	-1,026,420

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

	24 Sep 2024 week	Prior week
Long	587,823	607,540
Short	2,142,255	2,201,400
Net	-1,554,432	-1,593,860

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

	24 Sep 2024 week	Prior week
Long	467,828	431,039
Short	1,493,106	1,525,065
Net	-1,025,278	-1,094,026

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

	24 Sep 2024 week	Prior week
Long	353,820	358,317
Short	506,402	468,028
Net	-152,582	-109,711

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

	24 Sep 2024 week	Prior week
Long	178,425	176,456
Short	444,804	450,759
Net	-266,379	-274,303

(Reporting by Karen Brettell; Editing by Jonathan Oatis and Daniel Wallis)

((karen.brettell@thomsonreuters.com;))