NEW YORK May 2 The margin of investors who are
bearish on longer-dated U.S. Treasuries over those who are
bullish held at a two-month high before the Federal Reserve's
two-day policy meeting, J.P. Morgan's latest Treasury client
survey showed on Tuesday.
The U.S. central bank was widely expected to leave its
interest rate target in a range of 0.75-1.00 percent after it
raised it to that level in March.
Fed policymakers' upcoming meeting will end on Wednesday.
The share of "short" investors who said they were holding
fewer longer-dated U.S. government securities than their
portfolio benchmarks rose to 25 percent from 22 percent in the
prior week, according to the J.P. Morgan survey.
J.P. Morgan surveyed clients including bond fund managers,
central banks and sovereign wealth funds.
The share of "long" investors who said they were holding
more longer-dated Treasuries than their benchmarks rose to 16
percent from 14 percent.
Short investors outnumbered long investors by nine points,
the most since the week of Feb. 21. A week ago, they were net
short by eight points.
On Tuesday, the yield on the benchmark 10-year Treasury
was 2.313 percent, compared with 2.329 percent a
week earlier, according to Reuters data.
On the other hand, active clients, which included market
makers and hedge funds, remained overall bullish on longer-dated
Treasuries for a third straight week, the J.P. Morgan survey
Thirty percent of them said they were long, 10 percent said
they were short and 60 percent said they were neutral, the same
as a week ago.
(Reporting by Richard Leong; Editing by Meredith Mazzilli)