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JPMorgan Close Position on the German and US Treasury Yield Spread Trade
Jin10 data on October 20 reported that JPMorgan announced it has closed its position of “go long on 10-year German bonds/shorting 10-year U.S. bonds.” Strategists Francis Diamond and Elisabetta Ferrara stated in the report: “As we have turned neutral on the duration of German bonds, we are now taking profits on the spread trade between 10-year German and U.S. bonds.” They noted that if German bond yields rise significantly, the bank is prepared to re-build a position on this trade. JPMorgan also dropped its bullish inclination towards short-term Euro and Pound interest rates.