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Net shorts on U.S. longer-dated bonds fall from record high -JPMorgan
October 11, 2017 / 1:49 PM / 2 months ago

Net shorts on U.S. longer-dated bonds fall from record high -JPMorgan

    NEW YORK, Oct 11 (Reuters) - The margin of investors who
said they had fewer longer-dated Treasuries than their
benchmarks over those who held more longer-dated bonds than
their benchmarks retreated from a record peak, JPMorgan Chase &
Co.'s latest client survey showed on Wednesday.
    Investors reloaded their bond holdings following a mixed
September payrolls reports and on renewed concerns about the
tension between the United States and North Korea over the
latter's nuclear weapons program, analysts said.

    A spat between U.S. President Donald Trump and a top
Republican senator has raised worries whether a tax plan Trump
introduced would be enacted, possibly removing a key stimulus
that would promote faster economic growth.
    The share of investors who said they were "short"
longer-dated Treasuries fell to 42 percent from 44 percent on
Oct 2. 
    The share of them who said they were "long" jumped to 15
percent from 5 percent last week.
    The net shorts declined to 27 percent from a record peak in
the prior week, JP Morgan said.
    Among active clients which include market makers and hedge
funds, 50 percent of them said they were short longer-dated U.S.
bonds, down from a record 70 percent last week, while 10 percent
of them said they were long, up from none a week earlier. 
    At 9:32 a.m. (1310 GMT), the 10-year yield was
down 1.1 basis points at 2.334 percent, which was below 2.402
percent, its highest in about five months set last Friday.
    A week ago, the 10-year yield closed at 2.332 percent.
    JPMorgan surveyed clients including 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
 Oct. 10           15      43       42       -27
 Oct. 2            5       51       44       -39
 Sept. 25          11      59       30       -19
 Sept. 18          16      61       23        -7
 Sept. 11          9       64       27       -18
 Sept. 5           7       66       27       -20
 Aug. 28           7       75       18       -11
 Active clients                                
 Oct. 11           10      40       50       -40
 Oct. 2            0       30       70       -70
 Sept. 25          20      50       30       -10
 Sept. 18          10      70       20       -10
 Sept. 11          0       90       10       -10
 Sept. 5           0       80       20       -20
 Aug. 28           0       90       10       -10
 * NOTE: Positive value denotes net long, negative value denotes
net short

    

 (Reporting by Richard Leong; Editing by Andrea Ricci)

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