Reuters logo
Investors raised U.S. bond bets after payrolls data--survey
May 7, 2013 / 3:17 PM / in 4 years

Investors raised U.S. bond bets after payrolls data--survey

NEW YORK, May 7 (Reuters) - 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 prior week.

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, analysts said.

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 wealth funds.

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.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below