J.P.Morgan Clients Add Duration In EGBs

J.P.Morgan have released their latest survey covering European real-money fixed income investors, with the following key takeaways outlined:

• “European real money investors in EGBs increased their duration exposure (from +0.04 to +0.06 years). This level is the highest observed since the beginning of 2023.”
• “Single-currency European real money investors in EGBs strongly increased their long duration exposure (from +0.32 to +0.41 years). This is the highest level since October 2021.”
• “Investors fully neutralised their mild intra-EMU widening exposure (from 5% net short to 1% net long). This level is well above the average observed since early 2023.”
• “European multi-currency investors moderately increased their duration exposure in USD (from +0.08 to +0.10 years).”
• “In the UK, single-currency investors in GBP slightly decreased their long duration exposure (from +0.37 to +0.35 years). This level remains higher than the average observed since early 2022.”
• Note that all duration deviations are relative to the relevant benchmark and are given in years.