LONDON, Jan 16 (Reuters) - A record 91% of global investors expect lower short-term bond yields in 12 months' time, as they position for central bank interest rate cuts, a January survey of fund managers published by Bank of America on Tuesday showed.

When and how quickly central banks begin cutting interest rates is the most important question for markets at present, and two thirds of respondents to the survey said the U.S. Federal Reserve will be the most important driver of bond yields in 2024, and 52% the most important driver of equity prices.

Current market pricing indicates around a 70% chance the Fed will cut rates in March, while the European Central Bank is seen as most likely to begin its cuts in April.

The percentage of respondents to the survey expecting lower long-term rates dipped sightly to 55% from a record 62% in December however, which BofA attributed to the major rally in bonds in November and December.

The benchmark 10-year U.S. Treasury yield dropped more than 100 basis points in November and December.

Investors also sharply pared back their overweight positions in bonds, and are now a net 3% overweight down 17 percentage points from the previous survey. Investors' allocation to cash ticked up slightly to a net 4.8% from 4.5% "as bond market optimism tempered" the report said.

The bank surveyed 221 participants with $589 billion of assets under management earlier this month.

It also showed more investors expect a weaker Chinese economy in the next 12 months than a stronger one for the first time since May 2022, and that inventors think the most crowded trade is "long magnificent seven" referring to high-performing U.S. large-cap tech stocks, such as Apple, Nvidia and Amazon.

(Reporting by Alun John; Editing by Amanda Cooper and Sharon Singleton)