J.P.Morgan European Client Survey Indicates Reduction In Outright Longs

J.P.Morgan’s latest European bond investor client survey reveals that “European real money investors in EGBs decreased their long duration exposure (from +0.23 to +0.11 years). This level remains above the average observed since the beginning of 2020 (+0.07 years).”

• “Single-currency European real money investors in EGBs also modestly decreased their long duration exposure (from +0.42 to +0.39 years). This level is still higher than the average observed since early 2021 (+0.32 years).”
• “Investors turned modestly overweight on their intra-EMU exposure (moving from 3% net short to 12% net long). The average observed since the beginning of 2022 is 3% net short.”
• “European multi-currency investors decreased their long duration exposure in USD (from +0.14 to +0.05 years).”
• “Single-currency investors in GBP decreased their long duration exposure (from +0.38 to +0.27 years. This level is in line with the average observed since the beginning of 2023 (+0.27 years).”
• Note that all duration deviations are relative to the relevant benchmark and are given in years.