Investors in U.S. Treasuries reduced expectations that prices of the securities will climb as the percentage of so-called long positions dropped in a weekly survey by JPMorgan Chase & Co.
The percent of net longs in the firm’s all-clients survey dropped to two percentages points in the week ended yesterday. The number of outright neutrals was unchanged at 57 percent.
The level of outright shorts rose to 21 percent from 19 percent the previous week. JPMorgan doesn’t disclose the number of clients in the survey.
“It’s a reflection of the balanced outlook for rates,” said Srini Ramaswamy, a JPMorgan strategist in New York. “What’s keeping rates here or what could push rates lower is the risk of the crisis in Europe. Except for that risk, rates should probably be much higher.”
The yield on the benchmark 10-year note rose two basis points, or 0.02 percentage point, to 1.96 percent at 11:24 a.m. in New York. The yield touched 2.4 percent on March 20, the highest since October and has dropped for the past five weeks. After falling to a record 1.67 percent in September, the yield traded as low as 1.79 percent this year.