JPM European Client Survey: Re-Adding EGB Tighteners, Turns Long Gilt

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 observed since the end of 2015.
• Single-currency European real money investors in EGBs modestly reduced their longs (from +0.52 years to +0.47 years). Their current exposure remains at the longer end of the range observed over the past decade.
• Investors added back to their intra-EMU tightening exposure since the last survey (from 49% net long to 63% net long, about 3/4 of the most bullish OW since mid-2015).
• European multi-currency investors in USD turned broadly neutral (from +0.05 years to +0.01 years), as are US domestic investors (from 9% net long to 4% net long).
• In the UK, single-currency investors in GBP turned long (from -0.05 years to +0.09 years). UK real money investors have typically been short or neutral GBP duration over the past few years.
• N.B. The "years" metric represents duration deviation from the respective benchmarks in years.