Traders Reverse Net Short Positions On Yield Curve

As October volatility reached high levels, speculative traders in December covered half their short positions in Eurodollars last week, according to a Royal Bank of Scotland analysis and the Commodity Futures Trading Commission Commitment of Traders report. Eurodollars had been dropping in value on a short term basis after topping out near October 8 at 99.7685. The price dropped to a near term low of 99.75380 on November 17 and have generally stabilized near 99.7560, as basis the Eurodollar end of day Index ($XED). Open interest in the contract declined by nearly 72,000, representing an 11.5 basis point change.  Speculative shorts now…