More investors are warming to the idea of owning a US Treasury bond that matures beyond 30 years, but most of them still prefer the US Treasury Department to roll out a 20-year security over an ultra-long issue, a J.P. Morgan survey showed on Thursday.
Thirty-nine percent of the nearly 130 respondents said they would buy an ultra-long Treasury bond. This was more than the 19% who said they would do so two years ago, according to the survey. The respondents include banks, asset managers and hedge funds.
Half of those surveyed said they prefer a 20-year Treasury security in the latest survey. That figure was significantly lower than 73% two years earlier.
The rest of investors said they favour an ultra-long zero-coupon security, slightly higher than in the prior survey.
Earlier this month, the US Treasury Department asked for updates from market participants about the possibility of selling ultra-long bonds.