Bloomberg News

Treasury Investors Most Neutral Since February, JPMorgan Says

March 27, 2012

Treasury investors in a weekly survey by JPMorgan Chase & Co. reduced expectations that prices of Treasuries would rise, increasing so-called neutral positions to the highest level since Feb. 21.

The percent of “net longs” dropped to 4 percent in the week ended yesterday, from 10 percent last week, while the number of outright neutrals in the firm’s “all clients” survey rose to 66 percent, JPMorgan wrote in a report today.

The level of outright shorts was unchanged at 15 percent, while the survey showed the level of outright longs dropped to 19 percent from 25 percent. A long position is a bet the price of a security will rise, while a short position is a wager the price of a security will drop.

The yield on the benchmark 10-year note touched 2.4 percent on March 20, the highest since October. After dropping to a record low of 1.67 percent in September, the yield traded as low as 1.79 percent this year.

The 10-year yield dropped two basis points, or 0.02 percentage point, to 2.23 percent at 8:55 a.m. in New York.

JPMorgan doesn’t disclose the number of clients in the survey. Srini Ramaswamy, a JPMorgan strategist in New York, wasn’t immediately available to comment.

To contact the reporter on this story: Susanne Walker in New York at

To contact the editor responsible for this story: Dave Liedtka at

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