J.P.Morgan Flags Increased Gilt Exposure In Latest Client Survey

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

• “Multi-currency European real money investors in EGBs marginally increased their duration exposure (from +0.03 to +0.04 years). This level is higher than the average observed since January ‘23 (neutral duration positioning since the 11 Jan ‘23).”
• “Single-currency European real money investors in EGBs maintained their long duration exposure (+0.32 years).”
• “Investors increased their intra-EMU widening exposure since the last survey, although remain very close to neutral (from 4% to 5% net short). This still remains far from the average observed since early January ‘21 (average of 18% net short since 6 Jan ‘21).”
• “European multi-currency investors slightly increased their duration exposure in USD (from +0.07 to +0.08 years).”
• “In the UK, single-currency investors in further increased their long GBP duration exposure (from +0.34 to +0.37 years). This level is approaching the historical peaks observed in October ‘20 (+0.39 years on the 28 Oct ‘20).”
• “Note that all duration deviations are relative to the relevant benchmark and are given in years.”