(Reuters) Hedge funds continue to bet on a flatter U.S. yield curve, but they are raising the stakes less and less, suggesting their conviction in the trade is ebbing as the end of the year approaches. That shouldn’t come as a surprise – the curve was unlikely to continue flattening at such a rapid pace and positions were always vulnerable to profit-taking going into the holidays. The latest data from the Chicago Futures Trading Commission show that speculators may have more confidence, however, in another profitable macro trade of recent weeks – they built up their biggest short dollar position in over a month.

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