MNI Europe Pi: Move Away From Longs Continues (Gilts Excepted)

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EXECUTIVE SUMMARY

• The recent move away from long-leaning structural positioning broadly continued through the recent holiday-interrupted period.
• 5 of 7 contracts are in outright "short" territory (it was 4 of 7 in our last biweekly update), with trade in the most recent week largely indicative of further short-setting and long reduction.
• The two exceptions in terms of positioning are Gilt and BTP which are long-leaning.
• GERMANY: A major shift in our latest update is in Bobl which was in long territory as of just a couple of weeks ago but is now short. Bund remains in short territory as well but Buxl has now extended to very short  from merely "short" previously. Schatz remains in very short structural positioning. The latest's week trade showed short-setting in each contract, with the exception of Schatz (longs set).
• OAT: OAT structural positioning remains short (having flipped in December from long previously). Last week's trade was indicative of short-setting.
• GILT: Gilt structural positioning has jumped to very long after months in relatively flat territory. The latest week saw some longs set.
• BTP: BTP structural positioning remains in long territory. Trade indicative of long reduction was seen last week.