CROSS ASSET: BofA: FI Longs Concentrated In Front, USD Positioning Not V Short

Following their latest client survey Bank of America note that “the global rates rally is driving a perception that long rates is the most crowded trade, exceeding long equities for the first time.”

• However, they go on to flag that their survey suggests “global duration longs remain unchanged and within historical highs. This supports our view that positioning, at least initially, was concentrated at the front-end of the curve.”
• They also note that “the sharp USD FX sell-off has led to some concern that USD shorts may be crowded. There is little supporting evidence in our survey though: USD views are slightly bearish but positioning is close to neutral, aligning nicely with the message from our proprietary FX flows.”