Government bonds are now the 'most crowded' market trade, more popular than technology stocks

In terms of positioning, investors moved to cash at numbers not seen since the U.S. debt ceiling standoff eight years ago. They shed positions in global stocks to their lowest allocation since the financial crisis bottom in March 2009, and increased bond allocations to an overweight level not seen since September 2011.plunged 40 percentage points, with a net 41% now expecting deterioration over the next year. That is the biggest one-month plunge in the 23-year history of the fund manager survey.

On the economy, expectations for growth tumbled by a record 46 percentage points, with 50% of respondents on net expecting growth to weaken in the next 12 months. Survey respondents "have not been this bearish since the Global Financial Crisis, with pessimism driven by trade war and recession concerns" Michael Hartnett, chief investment strategist at BofAML, said in a statement. "The tactical 'pain trade' is higher yields and higher stocks, particularly if the Fed cuts rates on Wednesday."Investors are watching what happens with this week's Federal Open Market Committee meeting, with the U.S.

Positioning in the $15.9 trillion U.S. government bond market reflects a conviction that yields are going to fall,. ETF investors have poured more than $66 billion into bond funds in 2019, about double the amount of equity inflows. Falling yields mean higher prices and better returns for funds. The biggest beneficiaries of the move have been funds that deal in the Treasury market. For instance, the

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