Nomura suggest that "investors in global......>

BONDS: Nomura suggest that "investors in global bond markets probably cannot

ignore what looks like the start of a bullish period in global equities. Indeed,

major hedge funds engaged in the bond market (relative value, global macro hedge

funds) are notably scaling back their long positions in DM government bonds,

especially in the long zone. Global macro hedge funds are tilted short USTs,

seemingly hunting for the stops in trend-chasing CTAs' long positions in 10yr

UST futures (TY). CTAs have kept a slight net long position in DM government

bond futures, and do not appear to be making any major adjustments. Although we

estimate that CTAs have become net sellers of Bund futures and JGB futures (if

only by a small margin), we think they will hold tight in their positioning in

UST futures (TY) unless they see the 10yr UST yield break above 0.84% or so."