Investors net shorts in Treasuries rise after market rout: survey

Investors net shorts in Treasuries rise after market rout: survey

© Reuters. A man walks away from the U.S Treasury Department in Washington© Reuters. A man walks away from the U.S Treasury Department in Washington

NEW YORK (Reuters) – Bond investors increased their net bearish bets on longer-dated U.S. government debt on Tuesday following last week’s market selloff spurred by worries about rising inflation and a faster pace of Federal Reserve rate hikes, a J.P. Morgan survey showed on Wednesday.

The margin of investors who said they were “short,” or holding fewer Treasuries than their portfolio benchmarks, over those who said they were “long” or holding more Treasuries than their benchmarks rose to 11 percent, the highest level in three weeks, according to the survey.

Last week, their net shorts in longer-dated U.S. government debt totaled six percent.

Benchmark 10-year Treasury yields () reached 3.261 percent, the highest level since May 2011, Refinitiv data showed.

Growing Treasury supply also put upward pressure on bond yields.

On Wednesday, the U.S. Treasury Department sold $36 billion in three-year notes and will sell another $23 billion in 10-year debt, following by a $15 billion 30-year auction on Thursday.

(Graphic: Investors positions in longer-dated U.S. Treasuries – https://tmsnrt.rs/2OikPnI)

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Source : Reuters Link

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