NEW YORK, Oct 14 (Reuters) - Bond investors raised their net bullish or long bets on longer-dated U.S. Treasuries relative to their bearish or short bets to the highest level in 1-1/2 years, according to a J.P. Morgan survey released on Wednesday.
The move came on signs of weakening growth in the United States and China, the world’s two largest economies, and rhetoric from some top Federal Reserve officials who suggested an interest rate increase later this year is not a sure bet.
The share of “long” investors who said on Tuesday they were holding more longer-dated U.S. government debt than their portfolio benchmarks rose to 20 percent from 17 percent the previous week.
The share of “short” investors who said they were holding fewer longer-dated Treasuries than their benchmarks fell to 17 percent from 20 percent last week.
The share of long investors was greater than the share of short investors by 3 percentage points, swinging from a net short of 3 percentage points last week. This was most net longs since April 7, 2014, J.P. Morgan said.
The share of “neutral” investors who said they were holding amounts of longer-dated Treasuries that match their benchmarks was 63 percent for a second week. (Reporting by Richard Leong; Editing by Meredith Mazzilli)