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Investors most bearish in U.S. bonds since April: survey

Kitco News

(Reuters) - Bond investors grew more bearish on U.S. longer-dated government debt to a level not seen in over five months as optimism about U.S.-China trade tensions and stimulus to bolster the global economy reduced bond demand, a J.P. Morgan survey released on Tuesday showed.

Benchmark 10-year Treasury yields US10YT=RR rose to a one-month high at 1.675% on Tuesday, rising from a three-year low of 1.429% reached last week.

In late August, the yields on U.S. 30-year Treasury bonds US30YT=RR hit a record low of 1.905%, according to Refinitiv data.

The share of investors who said on Monday they were “short,” or holding fewer longer-dated Treasuries than their portfolio benchmarks, exceeded the share who said they were “long,” or holding more longer-term government debt issues than their benchmarks, by 4 percentage points.

This was the highest level since April 1, according to J.P. Morgan.

A week ago, investors were net short by 2 percentage points.

(GRAPHIC - Investors positions in longer-dated US Treasuries, here)

Reuters Graphic

Reporting by Richard Leong; editing by Jonathan Oatis

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