Bank of America Global Research highlights the latest findings from its FX and Rates Sentiment Survey.

"Markets have been rattled by the global government bond selloff, but global benchmark investors are not yet panicking. 70% of respondents believe it reflects improved growth, up from 30% last month. Global duration exposure rose slightly even as yields climbed, and long rates remains the highest conviction trade," BofA notes.

"There are pockets of large position changes: EUR FX exposure was cut by the most on record, peripheral bond exposure fell to the lowest level since Jan 2024 and EM FX exposure retreated from 15-year highs. Yet this bearishness is not at contrarian stretched levels from a historical perspective," BofA adds.