Differentiation in the U.S. Treasury Futures market positions: The 5-year contracts face significant liquidation, with funds concentrating on August Federal Fund Futures.

According to the latest open interest contract data released by the Chicago Mercantile Exchange, the US debt and interest rate futures market is experiencing significant position adjustments, with a clear differentiation in the open interest of contracts with different maturities. In the Treasury futures market, the 5-year US Treasury contract saw a large decrease in open interest of approximately 34,000 contracts for the second consecutive trading day, marking the largest decrease since June 30. Meanwhile, the open interest of the 2-year Treasury contract has been decreasing for the fourth consecutive trading day, with a cumulative decrease equivalent to approximately $5 million per basis point. In contrast, the open interest of the 10-year and over 10-year Treasury contracts has increased. In the interest rate derivatives market, the open interest of most SOFR futures contracts has decreased, with four contracts expiring in 2027 seeing a decrease of approximately $1.6 million per basis point. As for federal funds futures, the open interest of the July contract has decreased by nearly 21,000 contracts, dropping to the lowest level since June 23; in stark contrast, the open interest of the August contract has continued to rise and is now close to 800,000 contracts, more than double that of the July contract. This position adjustment indicates that as the July contracts approach expiration, traders are accelerating their closing or transferring of positions. Funds are significantly concentrating on the August federal funds futures, reflecting the market's heightened attention and speculation on the August interest rate decision by the Federal Reserve.