* Most "short" Treasuries investors since July 2011 -survey
* Number of "longs" rebounds from over 16-month low
* More than half of active investors said bearish on bonds
NEW YORK, Jan 29 The number of investors who are
bearish on U.S. Treasuries grew to its highest in nearly 19
months as some favored stocks and other higher-yielding assets,
a private survey released on Tuesday showed.
Encouraging domestic economic data and signs of a healthier
banking system in Europe spurred purchases in equities,
corporate bonds and other risky investments and selling in
safe-haven U.S. and German government bonds.
On Monday, the yield on benchmark 10-year Treasury notes
rose above 2 percent, a level not seen in nine
months even as Wall Street stocks retreated from their five-year
highs set last week.
In the latest survey from J.P. Morgan Securities, one in
four investors said on Monday they were "short" Treasuries, or
owning fewer Treasuries than their benchmarks.
This was the highest level of "shorts" since July 5, 2011,
J.P. Morgan said.
Still, many investors remained wary about a protracted
standoff in Washington over cutting federal spending and, to a
lesser extent, about the debt ceiling.
Last week, Congress and President Barack Obama agreed to a
near four-month extension of the debt limit, which was at $16.4
trillion, in a bid to avert a U.S. default.
The share of investors who were "long", or holding more
Treasuries than their benchmarks, rebounded from the lowest in
more than 16 months set last week.
Long investors accounted for 13 percent of the survey, up
from 7 percent the prior week, according to J.P. Morgan
Securities' latest weekly survey of its Treasuries clients.
The share of investors surveyed who said they were "neutral"
on U.S. government debt, or holding Treasuries equal to their
portfolio benchmarks, fell to 62 percent from 74 percent the
Within the survey, more than half of active clients,
including market makers and hedge funds, who are viewed as
taking on speculative bets in Treasuries, expected Treasury
yields to rise in the latest week.
The share of shorts among active clients rose to 54 percent
from 46 percent, while the share of neutrals fell to 38 percent
from 54 percent last week.
The share of longs among active clients rose to 8 percent
from zero, which was a level not seen since the week of Nov. 5.