Reuters logo
U.S. longer-dated bond net shorts hit highest since December -JPMorgan
July 5, 2017 / 1:43 PM / 5 months ago

U.S. longer-dated bond net shorts hit highest since December -JPMorgan

    NEW YORK, July 5 (Reuters) - The margin of investors who are
bearish on longer-dated U.S. Treasuries over those who are
bullish blew out to its widest level since December, JPMorgan's
latest client survey showed on Wednesday.
    Recent signals from overseas central banks that they might
consider reducing monetary stimulus later this year ignited a
selloff in bond markets worldwide. U.S. benchmark 10-year
Treasury yields reached their highest levels in
seven weeks early on Wednesday.  
    Perceived hawkish rhetoric from the European Central Bank,
Bank of England and Bank of Canada overshadowed doubts about
whether the Federal Reserve would raise interest rates again by
year-end due to recent signs of softening U.S. inflation,
analysts said.
    Short investors, or those who said they were holding fewer
longer-dated Treasuries than their benchmarks, outnumbered long
investors who said they were holding more longer-dated bonds
than their benchmarks by 21 points on Monday, which was the most
net shorts since Dec. 12, 2016, JPMorgan said.
    Last week, net shorts totaled 4 points, which were the
fewest since April 17.
    On Wednesday, the 10-year Treasury yield was
2.352 percent, up from 2.223 percent a week ago. It reached a
seven-week peak of 2.355 percent earlier Wednesday, according to
Reuters data.
    U.S. financial markets were closed on Tuesday due to the
July Fourth holiday.
    JPMorgan surveyed clients that included bond fund managers,
central banks and sovereign wealth funds. Their active clients
included market makers and hedge funds.
    Below includes the latest JPMorgan survey results of its
Treasury clients:

 All clients     Long    Neutral  Shorts   Net
 July 3              11       57       32         -21
 June 26             23       50       27          -4
 June 19             18       57       25          -7
 June 12              9       64       27         -18
 Active clients                                      
 July 3              20       50       30         -10
 June 26             20       50       30         -10
 June 19             20       60       20           0
 June 12             10       40       50         -40
 *positive value denotes net long, negative value denotes net

 (Reporting by Richard Leong; Editing by Bill Rigby)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below