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Reply #16: U.S. Treasuries investors turn more neutral-survey [View All]

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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jun-01-05 08:13 AM
Response to Reply #11
16. U.S. Treasuries investors turn more neutral-survey
http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8665655§ion=investing

NEW YORK, June 1 (Reuters) - U.S. Treasuries investors turned more neutral this week on talk of a shortage in cash notes and worries about the long-term economic integration of the euro zone, according to a survey released on Wednesday.

Investors polled on Tuesday who said they were net neutral on Treasuries climbed to 45 percent from 39 percent a week ago. The neutral reading is the highest since early April, J.P. Morgan Securities shows in its weekly poll.

Even the bank's active clients, which includes market makers and hedge funds that usually make risky bets, favored a neutral position in Treasuries. Eight percent of these clients said they were neutral, up from 6 percent a week earlier.

Yields on 10-year Treasuries (US10YT=RR: Quote, Profile, Research) fell to 5-month lows early Wednesday, buoyed by flight-to-safety demand for U.S. assets as the euro tumbled to a 7-1/2 month low against the dollar.

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