J.P.Morgan Survey: European Investors Still Hold Above Average EGB Duration Exposure

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 moderately decreased their duration exposure (from +0.04 to +0.03 years). This level is higher than the average observed since January 2022 (-0.04 years since the 5 Jan 2022).
• Single-currency European real money investors in EGBs continued to increase their long duration (from +0.29 to +0.32 years). This represents the highest level observed since late April 2022 (+0.33 years on 27 Apr 2022).
• Investors slightly increased their intra-EMU widening exposure since last survey, remaining very close to neutral (from 3% to 4% net short). This is in line with the average observed since early January 2022.
• European multi-currency investors maintained their duration exposure in USD (levelling at +0.07 years).
• In the UK, single-currency investors in GBP maintained their long duration exposure (levelling at +0.34 years). This level is still considerably larger than the average observed since early 2021 (-0.08 years since the 6 Jan 2021).
• Note that all duration deviations are relative to the relevant benchmark and given in years.