BONDS: J.P.Morgan European Client Survey Shows Duration Cut Across Most Markets

The latest J.P.Morgan European client survey reveals that “multi-currency European real money investors decreased their long duration exposure in EGBs (from +0.23 to +0.20 years). This level is broadly in line with the average observed since the beginning of ‘24 (+0.21 years).”

• “Single-currency European real money investors decreased their long duration exposure in EGBs (from +0.45 to +0.34 years). This level is now broadly in line with the average observed since early ‘23 (+0.34 years).”
• “Investors maintained their overweight exposure to the European periphery (moving from 24% to 23% net long). This level remains above the average observed since the beginning of ‘23 (average of 6% net long).”
• “European multi-currency decreased their duration exposure in USD (from +0.08 years to neutral).”
• “Single-currency investors in GBP decreased their long duration exposure (from +0.40 to +0.35 years). This level is broadly in line with the average observed since the beginning of ‘23 (+0.32 years).”
• Note that all duration metrics are compared to their respective benchmarks.