🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Investors bearish on U.S. bonds for first time since July: survey

Published 09/04/2019, 02:13 PM
Updated 09/04/2019, 02:16 PM
Investors bearish on U.S. bonds for first time since July: survey
US30YT=X
-

(Reuters) - Bond investors overall turned bearish on U.S. longer-dated government debt even as anxiety about a softening global economy and U.S.-China trade tensions has stoked a global bond market rally, a J.P. Morgan survey showed on Wednesday.

The ongoing drop in bond yields has led some money managers to reckon the move may be overdone at least for now, analysts said.

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 2 percentage points.

This was the first time short investors outnumbered long ones since July 8, according to J.P. Morgan.

A week ago, investors were net long by 4 percentage points.

Last week, the yields on U.S. 30-year Treasury bonds (US30YT=RR) hit a record low of 1.905%, according to Refinitiv data.

GRAPHIC: Investors positions in longer-dated U.S. Treasuries - https://fingfx.thomsonreuters.com/gfx/editorcharts/TREASURIES-JPMORGAN/0H001PBDZ4X5/eikon.png

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.