NEW YORK (Reuters) - Bond investors scaled back their bullish bets on U.S. longer-dated government debt after recession fears pushed 30-year bond yields to record lows last week, a J.P. Morgan survey showed on Tuesday.
The share of investors who said on Monday they were “long,” or holding more longer-dated Treasuries than their portfolio benchmarks, exceeded those investors who said they were “short,” or holding fewer longer-term government debt issues than their benchmarks, by 1 percentage point.
This was the smallest margin since July 8, and less than a 9 point gap a week ago, J.P. Morgan said.
Last Thursday, 30-year bond yields US30YT=RR fell to a record low of 1.916%, while 10-year yields US10YT=RR touched a three-year trough of 1.475%, according to Refinitiv data.
Longer-dated yields declined more than shorter-dated ones as worries about trade tensions between China and the United States and a global economic slowdown touched off another safe-haven stampede into U.S. government debt.
The move pushed 10-year yields below two-year yields US2US10=TWEB, known as a curve inversion, for the first time in 12 years last week.
An inverted yield curve has preceded every U.S. recession in the past 50 years.
On Tuesday, longer-dated yields fell on the day but remained above last week’s lows with 10-year yields last at 1.552%.
Reporting by Richard Leong; Editing by Chris Reese