Bloomberg News

Treasuries Investors Reduce Bullish Bets, JPMorgan Says

May 22, 2012

U.S. Treasuries investors cut bets the securities will advance, and raised neutral and short positions this week, according to a weekly survey by JPMorgan Chase & Co.

The percent of “net longs” dropped to four percentage points in the week ending yesterday, from 11 percentage points the previous week when it reached the highest level in more than two months. The number of outright longs dropped to 21 percent in the week ending yesterday, from 26 percent, the survey showed.

The percent of shorts rose to 17 percent from 15 percent in the same period. A long position is a bet that an asset will increase in value, while a short is a wager it will decrease.

The percent of “neutrals” rose to 62 percent from 59 percent. It had risen to 66 percent in the week ending May 7.

The benchmark 10-year yield rose four basis points, or 0.04 percentage point, to 1.78 percent at 7:52 a.m. in New York, according to Bloomberg Bond Trader prices.

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 swalker33@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


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