💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Investors least bullish on U.S. bonds in six weeks: survey

Published 08/20/2019, 12:26 PM
Updated 08/20/2019, 12:31 PM
© Reuters.  Investors least bullish on U.S. bonds in six weeks: survey
US10YT=X
-
US30YT=X
-

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 , 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%.

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.