JPM European Client Survey: Small Reductions From Recent Long Extremes

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

• Multi-currency European real money investors in EGBs modestly reduced their longs (from + 0.21 years to +0.19 years). Their current exposure is still close to the longest since the end of 2015.
• Single-currency European real money investors in EGBs reduced their long position (from +0.54 years to +0.45 years). Their current exposure is still close to the longest over the past decade.
• Investors modestly reduced their intra-EMU tightening exposure since the last survey (from 65% net long to 59% net long, about 75% of the most bullish OW since mid-2015).
• European multi-currency investors in USD remain small long (at +0.03 years), whereas US domestic investors remain small short.
• In the UK, single-currency investors in GBP decreased their longs (from +0.32 years to +0.26 years). UK real money investors have continued to reduce their long duration positioning from decade long levels seen around a month ago. Typically they have 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.