NEW YORK May 7 More investors increased their
U.S. Treasuries holdings in the latest week as they bought
cheaper bonds following Friday's market sell-off due to
stronger-than-expected data on U.S. payrolls in April, according
to a survey released on Tuesday.
A total of 15 percent of investors said on Monday they were
"long" Treasuries, or owning more Treasuries than their
benchmarks, higher than the 11 percent a week ago, the latest
J.P. Morgan Securities survey showed.
A total of 21 percent of its Treasuries clients said they
were "short" U.S. government debt, or owning less Treasuries
than their benchmarks, down from 27 percent a week earlier.
The share of investors surveyed who said they were "neutral"
on U.S. government debt, or holding Treasuries equal to their
portfolio benchmarks, edged up to 64 percent from 62 percent the
On Tuesday, the yield on benchmark 10-year Treasury notes
hovered at 1.773 percent, its highest level in three
weeks after stronger-than-expected data on German industrial
output reduced anxiety about the euro zone's biggest economy.
The 10-year note yield has extended its rise since Friday,
as investors prepared for this week's $72 billion worth of new
government debt supply as a part of the May quarterly refunding,
Within the J.P. Morgan survey, 15 percent of active clients,
who are viewed as taking on speculative bets in Treasuries,
expected Treasury yields to fall in the latest week, up from 8
percent a week ago.
The share of active shorts fell to 31 percent from 38
percent last week, while the share of neutrals among active
clients held steady at 54 percent.
J.P. Morgan surveys 40 to 60 of its Treasuries clients
weekly, of which 60 percent are fund managers; 25 percent are
speculative accounts and 15 percent central banks and sovereign
It asks 10 to 20 of its active clients each week about their
Treasuries holdings, of which 70 percent are speculative
accounts and the rest are money managers.