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Most net shorts in U.S. bonds since August-JP Morgan
November 3, 2015 / 3:48 PM / 2 years ago

Most net shorts in U.S. bonds since August-JP Morgan

NEW YORK, Nov 3 (Reuters) - Bond investors raised their net bearish, or short, bets on longer-dated U.S. Treasuries relative to their bullish, or long, bets to the highest level since mid-August, according to a J.P. Morgan survey released on Tuesday.

They have reduced their holdings in longer-dated U.S. government debt since last week after the Federal Reserve left the door open to ending its near-zero interest rate policy at its Dec. 15-16 policy meeting.

The sell-off in longer-dated Treasuries lifted benchmark 10-year yields to their highest in more than five weeks at 2.20 percent on Tuesday.

The share of “short” investors who said on Monday they were holding fewer longer-dated Treasuries than their benchmarks rose to 24 percent from 17 percent last week.

The share of “long” investors who said on Monday they were holding more longer-dated U.S. government debt than their portfolio benchmarks fell to 13 percent from 16 percent the previous week.

The share of short investors was greater than the share of long investors by 11 percentage points, up from 1 point last week. This was the most net shorts since Aug. 17, J.P. Morgan said.

Three weeks ago, long investors outnumbered shorts by 3 points, which was the most net longs since April 7, 2014.

The share of “neutral” investors who said they were holding amounts of longer-dated Treasuries that match their benchmarks fell to 63 percent from 67 percent last week. (Reporting by Richard Leong; Editing by Jonathan Oatis)

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