Investors in Treasuries were the most neutral in more than two months as they cut bullish positions ahead of the closely contested U.S. presidential elections, according to a survey by JPMorgan Chase & Co.
Investors raised neutral bets to 70 percent from 68 percent, pushing it to the highest level since Aug. 27, the survey reported, as President Barack Obama and Republican challenger Mitt Romney courted voters.
The proportion of net longs was at four percentage points in the week ending yesterday, according to JPMorgan, down from six percentage points the previous week.
The percent of outright longs dropped to 17 percent, from 19 percent the previous week, the survey said. The percent of outright shorts, or bets the securities will fall in value, remained at 13 percent, according to the survey.
The yield on the benchmark U.S. 10-year note rose two basis points, or 0.02 percentage point, to 1.7 percent at 8:57 a.m. in New York. It touched a record low of 1.379 percent on July 25 and reached a 2012 high of 2.4 percent on March 20.
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.