MNI Europe Pi: As Mixed As It Gets (Resending With PDF Link)

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EXECUTIVE SUMMARY:

European bond futures positioning is about as mixed as we have seen it all year: three contracts are structurally short/very short, two are flat, and two are long/very long. Indeed BTPs are as "long" and Gilts as "short" as they've been in 2025 so far, while the German curve is extremely mixed. There was a mix of indicative trading last week as well, with longs set in Germany, but shorts set/short cover elsewhere.

• GERMANY: If there is a theme in German contracts' structural positioning, it's twist steepening. After being "short" in our last biweekly update, Schatz has reverted to "long", where it was most of April/May. Conversely, Bund has moved to "very short" from "short", and Buxl has moved to "short" from "flat". Bobl is the only non-mover, remaining flat. Longs were set across all four contracts last week.
• OAT: OAT has reverted to flat from a brief stint in "long" structural positioning in our last update. The most recent week's trade was indicative of short setting.
• GILT: Gilt structural positioning has moved to its shortest level of the year - in sharp contrast to two months earlier when it was "very long". Shorts were set last week.  
• BTP: BTP remains in  "very long" territory and indeed has extended that slightly since our last update. Trade indicative of short cover was seen last week.