MNI Europe Pi: Short Lean Fades Away In October

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EXECUTIVE SUMMARY

• Trade since early October has largely faded what had previously been broadly "short"-leaning structural positioning across European bond futures.
• Most contracts are now structurally "flat", with BTP and Gilt notable exceptions.
• Trade in the latest week was mixed but indicative of less of a long bias, with longs reduced and shorts set across most contracts.

• GERMANY: German contracts' structural positioning is entirely flat, having been short/mixed in our last update 3 weeks ago. Bobl and Buxl remained flat since that update, but they are joined by Bund which had previously been "short", and Schatz previously "very short". The latest's week trade was very much mixed, with shorts set in Schatz and Bund, and longs reduced in Bobl and Buxl.
• OAT: OAT structural positioning continues to hold in in flat territory as with most of 2025. Latest week's trade was indicative of short setting.
• GILT: Gilt structural positioning has been in short territory throughout October after being "flat" for most of late Aug/early Sep. Latest week saw some long-setting however.
• BTP: BTP remains in its habitual "very long" territory, though is off the extreme longs seen in the summer. Trade indicative of long reduction was seen in the most recent week, however.