September 4, 2019 / 6:15 PM / 3 months ago

Investors bearish on U.S. bonds for first time since July: survey

FILE PHOTO: A trader looks at screens as he works on the floor at the New York Stock Exchange (NYSE) in New York, U.S., August 13, 2019. REUTERS/Eduardo Munoz

(Reuters) - Bond investors overall turned bearish on U.S. longer-dated government debt even as anxiety about a softening global economy and U.S.-China trade tensions has stoked a global bond market rally, a J.P. Morgan survey showed on Wednesday.

The ongoing drop in bond yields has led some money managers to reckon the move may be overdone at least for now, analysts said.

The share of investors who said on Monday they were “short,” or holding fewer longer-dated Treasuries than their portfolio benchmarks, exceeded the share who said they were “long,” or holding more longer-term government debt issues than their benchmarks, by 2 percentage points.

This was the first time short investors outnumbered long ones since July 8, according to J.P. Morgan.

A week ago, investors were net long by 4 percentage points.

Last week, the yields on U.S. 30-year Treasury bonds US30YT=RR hit a record low of 1.905%, according to Refinitiv data.

GRAPHIC: Investors positions in longer-dated U.S. Treasuries - here

Reporting by Richard Leong; Editing by Andrea Ricci

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