MNI Europe Pi: Increasing Shorts In Schatz

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EXECUTIVE SUMMARY

• European bond futures have mostly moved off the shortest-leaning/least long structural positioning seen in August and early September over the past week or two, with longs set and shorts covered over the course of last week.
• However positioning is very mixed across contracts, and some (Schatz, Gilt) have been going against the grain.

• GERMANY: German contracts' structural positioning leans short/mixed. Bobl and Buxl (both structurally flat) and Bund (short) have ticked away from the recent shortest positioning seen since early in 2025. That leaves Schatz as an exception, with "very short" positioning only deepening in the latest weeks. Last week's trade was indicative of long-setting and short cover across contracts.
• OAT: OAT structural positioning continues to hold in in flat territory as with most of 2025. Last week's trade was indicative of short cover.
• GILT: Gilt structural positioning has swung back to short territory after being "flat" for most of late Aug/early Sep. Last week saw some short covering.   
• BTP: BTP remains in its habitual "very long" territory, though is off the extreme longs seen in the summer. Trade indicative of further long-setting was seen in the most recent week.