J.P.Morgan European Client Survey Points To Deeper EGB Spread Tightening Bias

J.P.Morgan’s latest European bond investor client survey reveals that “European real money investors in EGBs maintained their long duration exposure (from +0.15 to +0.17 years). This level remains above the average observed since the beginning of 2020 (+0.08 years).”

• “Single-currency European real money investors in EGBs also maintained their long duration exposure (from +0.42 to +0.41 years). This level is higher than the average observed since early 2023 (+0.34 years).”
• “Investors increased their overweight exposure in intra-EMU vs. the last survey (from 7% to 20% net long). This level is above the average observed since the beginning of 2022 (2% net short).”
• “European multi-currency investors modestly increased their long duration exposure in USD (from +0.05 to +0.09 years).”
• “In the UK, single-currency investors in GBP maintained their long duration exposure (from +0.31 to +0.30 years). This level remains above the average observed since the beginning of 2021 (+0.01 years).”
• Note that all duration deviations are relative to the relevant benchmark and are given in years.