JPM European Client Survey: Multi-Year Long Duration In EGBs & Gilts

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

• Multi-currency European real money investors in EGBs modestly increased their longs (from + 0.18 years to +0.20 years). Their current exposure is the longest since the end of 2015.
• Single-currency European real money investors in EGBs added to their longs (from +0.47 years to +0.54 years). Their current exposure is the longest over the past decade.
• Investors added to their intra-EMU tightening exposure since the last survey (from 58% net long to 64% net long, about 80% of the most bullish overweight since mid-2015).
• European multi-currency investors in USD remain small long (from +0.05 years to +0.04 years), whereas U.S. domestic investors added to their small shorts (from 2% net short to 7% net short).
• In the UK, single-currency investors in GBP significantly increased their longs (from +0.24 years to +0.39 years). While UK real money investors had typically been short or neutral GBP duration over the past few years, their current positioning has reached new decade longs.
• N.B. The "years" metric represents duration deviation from the respective benchmarks in years.