JPM Client Survey: Further Reduction In EGB Longs, Gilt Shorts Build

Highlights from the latest J.P.Morgan European client survey:

• Multi-currency European real money investors in EGBs reduced their long position (from +0.16 to +0.10 years). Their current exposure still remains close to the 2-year average.
• Single-currency European real money investors in EGBs reduced their longs (from +0.50 to +0.41 years). However, their current exposure is still close to the longest over the past decade.
• Investors modestly lowered their intra-EMU tightening exposure since the last survey (from 52% net long to 47% net long, still around 60% of the most bullish OW since mid-2015).
• European multi-currency investors in USD have now turned modest short (from 0 years to -0.05 years), while U.S. domestic investors remain short (14% net short).
• In the UK, single-currency investors in GBP added significantly to their shorts (from -0.17 years to -0.33 years). Their current exposure is close to the shortest since mid-2018.
• N.B. The "years" metric represents duration deviation from the respective benchmarks in years.