J.P.Morgan European Client Survey: Modest Periphery Overweight

J.P.Morgan’s latest European client survey revealed the following:

• “Single-currency European real money investors in EGBs increased their long duration exposure (from +0.44 to +0.50 years). This remains significantly higher than the average observed since early 2020 (+0.34 years).”
• “Investors modestly increased their overweight intra-EMU exposure since last survey (from 5% to 9% net long). This level remains below the average long observed since the beginning of 2021 (average of 16% net long since 6 Jan 2021).”
• “European multi-currency investors decreased their long duration exposure in USD (from +0.15 to +0.10 years).”
• “In the UK, single-currency investors in GBP decreased their long duration exposure (from +0.35 to +0.28 years). This level is slightly above the average observed since the beginning of 2023.”
• “Note that all duration deviations are relative to the relevant benchmark and are given in years.”