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U.S. longer-dated bond net shorts hit two-month low -JPMorgan
June 27, 2017 / 2:47 PM / 6 months ago

U.S. longer-dated bond net shorts hit two-month low -JPMorgan

    NEW YORK, June 27 (Reuters) - The margin of investors who
are bearish on longer-dated U.S. Treasuries over those who are
bullish shrank further to its tightest since mid-April, J.P.
Morgan's latest client survey showed on Tuesday.
    Investors have reduced their bearish bond bets on 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 4 points on June 26, resulting in the
fewest net shorts since April 17, J.P. Morgan said.
    Last week, net shorts totaled 7 points. Two weeks ago, net
shorts stood at 18 points, which was the highest since Dec. 12,
J.P. Morgan said.
    On Tuesday, the yield on the benchmark 10-year Treasury note
 was 2.189 percent, up from 2.153 percent a week
earlier, according to Reuters data.
    J.P. Morgan 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 J.P. Morgan survey results of its
Treasury clients:

 All clients     Long    Neutral  Shorts   Net
 June 26             23       50       27          -4
 June 19             18       57       25          -7
 June 12              9       64       27         -18
 Active clients                                      
 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 Meredith Mazzilli)

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