JPM European Client Survey:  Marginal Dip In EZ Tighteners, Gilt Longs Up

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

• Multi-currency European real money investors in EGBs remain long (at +0.18 years). Their current exposure is at the longer end of the range since the end of 2015.
• Single-currency European real money investors in EGBs modestly added to their longs (from +0.47 years to +0.49 years). Their current exposure is at the longer end of the range over the past decade.
• Investors partially reduced their intra-EMU tightening exposure since the last survey (from 63% net long to 51% net long, about 5/8th of the most bullish OW since mid-2015).
• European multi-currency investors in USD remain broadly neutral (at +0.01 years), as are US domestic investors (from 4% net long to 0%).
• In the UK, single-currency investors in GBP added to their longs (from +0.09 years to +0.26 years). While UK real money investors had typically been short or neutral GBP duration over the past few years, their current positioning is the longest over the past decade.
• N.B. The "years" metric represents duration deviation from the respective benchmarks in years.