May 1, 2018 / 2:45 PM / 3 months ago

Investors least bearish on longer-dated U.S. bonds since Sept -JPMorgan

May 1 (Reuters) - The margin of investors who are bearish on longer-dated U.S. Treasuries versus those who are bullish on them shrank to its slimmest since September, JPMorgan Chase & Co’s latest client survey showed on Tuesday.

The move came after benchmark 10-year Treasury yields last week reached 3 percent for the first time since January 2014 on concerns about rising inflation and government borrowing. The 10-year yield retreated below 3 percent on buying from investors attracted to those yield levels.

At 10:35 a.m. (1435 GMT), the 10-year Treasury yield was 2.976 percent, up 4 basis points from late on Monday. The share of investors who said on Monday they were “short,” or holding fewer Treasuries than their portfolio benchmarks, decreased to 28 percent from 36 percent a week earlier.

The share of investors who said they were “long” longer-dated Treasuries slipped to 19 percent from 21 percent the prior week.

The net shorts fell to 9 percent from 15 percent last week, marking the smallest difference between the shares of short and long investors since Sept. 18, JPMorgan said.

The share of investors who said they were neutral on longer-dated government debt grew to 53 percent from 43 percent, JPMorgan said.

JPMorgan surveyed clients, including bond fund managers, central banks and sovereign wealth funds, as well as market makers and hedge funds. (Reporting by Richard Leong; Editing by Dan Grebler)

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