Tuesday, October 2, 2012

JPM survey - will the big bond selloff be delayed?

The JPM survey indicates that traders are already net short...which means that the market should see one more short covering push up (perhaps making a new local high) before the auction concession selloff can take place.  This all depends of course on just how accurate the JPM survey is to begin with.  Do you really think the big levered traders respond to these things truthfully?  I probably wouldn't.

RATES: Active Clients Net Short For First Time Since August: JPM
By James Holloway
Oct. 2 (Bloomberg) -- JPMorgan’s Treasury Client Survey for the week ended Oct. 1 vs week ended Sept 24.
  • All Clients

    • Long 17 vs 25
    • Neutrals 68 vs 66
    • Shorts 15 vs 9
    • Net longs 2 vs 16
  • Active Clients

    • Long 15 vs 39
    • Neutral 62 vs 46
    • Short 23 vs 15
    • Net short -8
  • “The active clients survey is net short for the first time since
    August 20”

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