US Treasury investors most bullish since Nov -poll

NEW YORK, Aug 31 (BestGrowthStock) – 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 (US10YT=RR: ) to 2.42 percent, a 19-month low,
and the 30-year yield (US30YT=RR: ) 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.
(Reporting by Richard Leong; Editing by James Dalgleish)

US Treasury investors most bullish since Nov -poll