U.S. Treasury futures market sees a cluster of short trades, and squeeze risk is quietly rising.

Traders are ramping up bets that U.S. Treasury yields will continue climbing from roughly two-decade highs, raising the risk that these positions could unwind abruptly at the first clear sign of an economic cool-down. With that in mind, bond traders are focused on a slew of key data due this week, including the Federal Reserve's preferred inflation gauge on Wednesday and the nonfarm payrolls report on Friday. Open interest in 5-year and 10-year Treasury futures contracts has risen sharply over the past few weeks. Data from CME Group shows that traders added to 5-year contract positions on 11 of the past 12 trading days, and boosted 10-year contract positions on 13 of the past 14 trading days.