Tags: Treasury | Investors | Bullish Since November

Poll: Treasury Investors Are Most Bullish Since November

Tuesday, 31 Aug 2010 02:45 PM

Investors are the most bullish on U.S. Treasuries since November as growing worries over a fading economic recovery have spurred demand for low-risk assets, a poll released on Tuesday showed.

The share of investors who said they are "long," or owning more Treasuries than their portfolio benchmarks, rose to 29 percent on Monday, up from 27 percent last week, J.P. Morgan Securities said.

This level of investor bullishness on Treasuries was the highest since last November, the firm said.

Last week, the scramble for U.S. government debt pushed the 10-year note yield to 2.42 percent, a 19-month low, and the 30-year yield to 3.46 percent, an 18-month low, according to Reuters data.

Although a majority of investors reckon these low yields are justified due to rising risks of deflation and of a double-dip recession, there are those who believe that the bond market is over-inflated and vulnerable to a sharp sell-off.

Those investors who said they have a "short" stance, or holding less in Treasuries than their portfolio benchmarks, rose to 18 percent from 16 percent last week.

There were more investors long Treasuries than those who are short Treasuries. The share of net longs held steady at 11 percent on Monday, J.P. Morgan said.

Two weeks ago, the net longs were 13 percent, which was the most in 10 months.

The share of investors who said they are neutral on bonds fell to 53 percent from 57 percent last week.

Three percent of those investors who said they are long Treasuries were active clients which include market makers and hedge funds. This was the same level as last week, it said.

None of the active clients are short Treasuries, unchanged from last week, while those who said they are neutral held steady for a second week at 8 percent.

© 2017 Thomson/Reuters. All rights reserved.

 
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Investors are the most bullish on U.S. Treasuries since November as growing worries over a fading economic recovery have spurred demand for low-risk assets, a poll released on Tuesday showed. The share of investors who said they are long, or owning more Treasuries than...
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Tuesday, 31 Aug 2010 02:45 PM
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