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TABLE-Investors most cautious on U.S. long bonds since early Nov. 2016 -JPMorgan
August 22, 2017 / 4:57 PM / a month ago

TABLE-Investors most cautious on U.S. long bonds since early Nov. 2016 -JPMorgan

    NEW YORK, Aug 22 (Reuters) - Investors turned the most
cautious in their holdings of longer-dated U.S. Treasury debt
since early November 2016, prior to the election that Donald
Trump won to capture the U.S. presidency, JPMorgan Chase & Co's
latest client survey showed on Tuesday.
    The share of investors who said they were holding
longer-dated Treasuries equal to their benchmarks, rose to 70
percent, the most since Nov. 7, and up from 59 percent a week
earlier, JPMorgan said.
    U.S. benchmark Treasury yields fell to seven-week lows late
last week due to safe-haven demand amid doubts about Trump's
ability to implement campaign promises, including tax cuts,
infrastructure spending and other measures aimed to stimulate
the economy.
    U.S. bond yields jumped in the weeks after Trump's Nov. 8
win due to expectations of aggressive fiscal measures from the
new administration, which would stoke inflation and widen the
federal budget deficit.
    Separately, a deadly attack in Barcelona last week also
pushed nervous investors toward U.S. government debt.

    At 12:24 p.m. EDT (1624 GMT), the 10-year Treasury note was
yielding 2.204 percent, down from 2.266 percent a week earlier.
On Friday, it touched a seven-week low of 2.162 percent, Reuters
data showed. 
    JPMorgan surveyed clients bond fund managers, central banks
and sovereign wealth funds, as well as market makers and hedge
funds.
    The chart below displays the latest survey results of
JPMorgan's Treasury clients:

  All clients     Long   Neutral  Shorts     Net
                                           Position
 Aug. 21           7       70       23       -16
 Aug. 14           11      59       30       -19
 Aug. 7            18      57       25        -7
 July 31           18      59       23        -5
 July 24           18      57       25        -7
 July 17           14      66       20        -6
 Active clients                                    
 Aug. 21           0       90       10       -10
 Aug. 14           10      70       20       -10
 Aug. 7            20      60       20        0
 July 31           20      60       20        0
 July 24           20      60       20        0
 July 17           20      70       10        10
 * NOTE: Positive value denotes net long, negative value denotes
net short

 (Reporting by Richard Leong, editing by G Crosse)
  

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