Treasuries Investors Raise Long Positions, JPMorgan Clients Survey Shows

U.S. Treasuries investors increased bets to the highest level since December 2010 that the price of the government debt will rise, a survey by JPMorgan Chase & Co. showed.

The percent of “longs” in the firm’s “all clients” survey rose to 26 percent for the week ending yesterday, up from 17 percent the previous week. The percent of net longs in the survey rose to 13 percent from 2 percent the previous week.

About 60 percent of the clients surveyed were “neutral,” the lowest level since March 2011 and down from 68 percent the previous week. The survey showed the percent of so-called “shorts” dropped to 13 percent from 15 percent.

A short position is a wager the price of a security will fall, while a long position is a bet it will rise.

Treasury prices have traded in a narrow range. After the yield on the 10-year note touched a record low of 1.67 percent on Sept. 23, it has traded as low as 1.79 percent this year and as high as 2.09 percent. The 10-year yield traded at 1.92 percent today at 12:30 p.m. in New York.

JPMorgan doesn’t disclose the number of clients in the survey. Srini Ramaswamy, a JPMorgan strategist in New York, wasn’t immediately available to comment.

To contact the reporter on this story: Susanne Walker in New York at swalker33@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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