European Duration Survey, 18 Feb 2010

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• Investors continued to add bearish positions, with exposure now net short across all markets. Euro area investors underwent the largest adjustment, followed by the US.
• Euro area domestic investors have now reached their most bearish level since Apr06. Investors further decreased their duration exposure to -0.28 years vs. benchmark from -0.16 in our last update.

• Multicurrency investors in Euro area bonds also decreased their bullish positioning, roughly in line with their domestic counterparts. Investors are now the most bearish since Jun07.

• Multicurrency investors in US Treasuries are also net short at -0.07 years vs. benchmark, down 0.08 years since our last update. US domestic investors however have not changed their positioning much over the past month, and are also marginally short.

• Multi-currency investors’ duration exposure to JGBs remained unchanged -0.06 years vs. benchmark. Positioning is still at its most bearish since Jul07.
• Domestic UK investors tempered their shorts, and increased duration exposure by 0.11 years to -0.12 vs. benchmark.

European duration survey results
% long, short and neutral. Current readings in bold; changes since last survey in italics

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Domestic and international clients' exposure to Euro area bonds
Deviation from the benchmark in years

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ENDS