MNI Europe Pi: Long Reduction / Short Setting Continues

EXECUTIVE SUMMARY:

• Structural positioning across most European futures contracts remains relatively flat, with most looking similar to our last full Europe Pi update on Jan 28. Again, this contrasts with longer-leaning positioning at the very end of 2024.
• BTP and OAT stand out for being long and short, respectively, with Buxl (short) the lone German contract not in flat territory.
• We continue to see longs reduced and shorts set across contracts, including over the most recent week of trade.
   

Full PDF Analysis:

MNI-PI12022025.pdf

• GERMANY: German contracts are largely flat (Schatz, Bobl, Bund), with Buxl standing out at short. The most recent week saw mostly longs reduced (shorts were set in Bund).
• OAT: OAT is in  short positioning (was "very short" in our last update). Recent trade suggests long reduction.
• GILT: Gilt structural positioning remains flat. The most recent week saw trade indicative of long reduction.
• BTP: BTP has returned to its usual structural long positioning, after briefly touching flat territory in January. Shorts were set in the most recent week of trade.