LONDON, May 13 (Reuters) - Global asset managers held

their biggest underweight position in the dollar in 19 years in

May, as President Donald Trump's chaotic trade policy cut

investor appetite for U.S. assets, Bank of America's global fund

manager survey (FMS) showed on Tuesday.

The United States and China have agreed to a 90-day trade

truce, after weekend talks in Geneva to break the deadlock

between the world's two largest economies. Reciprocal tariffs

have been slashed temporarily and, with them, the immediate

threat to the global economy.

"Pre-Geneva, investor sentiment glum, especially on U.S.

assets. May FMS (was) not as bearish as April FMS, but bearish

enough to suggest pain trade modestly higher given positive

US-China trade war ceasefire prevents recession/credit event,"

BofA said.

Fund managers cut their cash levels to 4.5% from 4.8%, often

a sign of confidence, but held the largest underweight position

in the U.S. dollar since May 2006, the bank said.

Bank of America said 75% of the survey was conducted before

the Geneva negotiations. The poll asks 208 panellists with $522

billion in assets under management.

A quarter of respondents expect a hard landing for the

economy, but this was down from nearly 50% in April's survey,

while a soft landing - one where the economy gently slows

without a recession - is now the central scenario, according to

61% of those polled.