LONDON (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.