J.P.Morgan Clients Extend Long Gilt Exposure, Neutral Intra-EGB

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

• “Multi-currency European real money investors in EGBs increased their duration exposure (from +0.06 to +0.09 years). This level remains well above the average observed since the beginning of ‘22 (-0.03 years since 5 Jan ‘22).”
• “Single-currency European real money investors in EGBs marginally decreased their long duration exposure (from +0.41 to +0.40 years). This remains well above the average since the beginning of ‘23 (+0.24 years since 11 Jan ‘23).”
• “Investors remain broadly neutral on intra-EMU exposure (from 1% net long to 2% net short). This level is well above the average observed since mid-‘22 (average of 12% net short since 15 June ‘22).”
• “European multi-currency investors further increased their duration exposure in USD (from +0.10 to +0.14 years).”
• “Single-currency investors in GBP increased their long duration exposure (from +0.35 to +0.38 years). This is the highest level observed since October ‘20.”
• Note that all duration deviations are relative to the relevant benchmark and are given in years.