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Treasuries Investors Reduce Bets on Drop, JPMorgan Says

JPMorgan Chase & Co. said investors raised expectations for price gains in U.S. Treasuries by the most on record in a weekly sentiment survey.

Long positions increased by 10 percentage points to 25 percent, the largest weekly increase in so-called outright longs since the survey started in October 2010, JPMorgan said in a report today. Neutral positions decreased by 15 percentage points to 57 percent, the largest weekly decline since March 7, 2011.

Short positions increased by 6 percent to 19 percent. A short position is a wager the price of a security will fall, while a long position is a bet it will rise. JPMorgan doesn’t disclose the number of clients in the survey.

To contact the reporter on this story: Cecile Gutscher in Toronto at cgutscher@bloomberg.net

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

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