NEW YORK Nov 22 The margin on bearish bets on
longer-dated U.S. Treasuries over bullish positions fell from
its widest level since January in the latest week, according to
a J.P. Morgan survey released on Tuesday.
Benchmark 10-year yields rose to their highest level in a
year last week as traders dumped bonds around the world on bets
a Trump administration and a Republican-controlled U.S. Congress
would enact tax cuts and government spending that would stoke
inflation through a surge in the federal borrowing.
Renewed appetite for bonds since last Friday has pushed U.S.
Treasury yields lower.
The share of "long" investors who said they were holding
longer-dated U.S. government debt than their portfolio
benchmarks rose to 14 percent from 11 percent a week ago, J.P.
Morgan said on the survey conducted on Monday.
The share of "short" investors, who said they were holding
fewer longer-dated Treasuries than their benchmarks, fell to 20
percent from 23 percent last week, J.P. Morgan said.
Short investors outnumbered long investors, or net shorts,
by 6 percentage points, down from 12 percentage points which was
the biggest difference since January.
The share of "neutral" investors, who said on Monday they
were holding amounts of longer-dated Treasuries that match their
benchmarks, was unchanged for a second week at 66 percent, J.P.
Morgan's survey showed.
The 10-year Treasury yield was last at 2.30 percent early on
Tuesday, below the 2.36 percent reached on Friday which was the
highest since Nov. 9, 2015, Reuters data showed.
(Reporting by Richard Leong; Editing by Meredith Mazzilli)