Bonds
Hardly Anyone Is Short Treasuries. Perhaps They Should Be
- Outright shorts in Treasuries are near lows, survey data says
- Bond volatility and bond yields are set to move higher
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Survey data shows that outright shorts in US Treasuries are near lows. But investors are missing a trick as inflation risks point to higher bond volatility and yields.
JP Morgan’s Treasury Survey tracks their clients’ positioning in Treasuries, asking them whether they are long, neutral or short. The net of the positions is close to flat, but outright shorts are unusually low, with the number of clients saying they are positioned that way near the nadir for the 20-year history of the survey.