NEW YORK Nov 29 The amount of bearish bets on
longer-dated U.S. Treasury debt above bullish positions declined
for a second week, according to a J.P. Morgan survey released on
Tuesday, as the recent selloff in the U.S. bond market showed
signs of subsiding.
Benchmark 10-year yields rose to their highest since July
2015 last week as traders had slashed their Treasury holdings on
fears a Trump administration and a Republican-controlled U.S.
Congress would cut taxes and boost government spending, stoking
inflation through a surge in federal borrowing.
Since Monday, speculation about bond purchases for portfolio
rebalancing at month-end has pushed down Treasury yields,
The share of "long" investors who said they were holding
longer-dated U.S. government debt than their portfolio
benchmarks was unchanged for a second week at 14 percent,
according to the survey conducted on Monday.
The share of "short" investors, who said they were holding
fewer longer-dated Treasuries than their benchmarks, fell to 18
percent from 20 percent last week, J.P. Morgan said.
Short investors outnumbered long investors, or net shorts,
by 4 percentage points, down from 6 points. Two weeks earlier,
the margin was 12 percentage points, the biggest difference
The share of "neutral" investors, who said on Monday they
were holding amounts of longer-dated Treasuries that match their
benchmarks, increased to 68 percent from 66 percent, the survey
The 10-year Treasury yield was last at 2.34 percent early
Tuesday, below the 2.42 percent reached last Wednesday. That was
the highest since July 15, 2015, Reuters data showed.
(Reporting by Richard Leong; Editing by Jeffrey Benkoe)