MNI Europe Pi: Shorts Fade, Longs Return

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• Trade in early 2026 so far has been indicative of reduced shorts and increased longs across European bond future structural positioning.
• Just 2 of 7 contracts are in structurally short territory, vs 5 of 7 in our last update 2 weeks ago, while there are now 3 longs (2 prior).
• The latest week's trade through Monday Jan 19 saw longs set across the board in Eurex contracts.
• GERMANY: German positioning is mixed. Bobl structural positioning remains erratic, moving back into long territory after being in "short" two weeks ago (it had previously been long through most of November/December). Bund remains in short territory with Buxl remaining very short. Schatz meanwhile has moved to flat after being "very short" previously. The latest's week trade showed longs set in each contract.
• OAT: OAT structural positioning has moved to flat from short in our previous bi-weekly update. The latest week's trade was indicative of long-setting.
• GILT: Gilt structural positioning remains  very long. However bucking the broader trend, he latest week saw some shorts set.
• BTP: BTP structural positioning has edged into very long territory after merely "long" prior. Trade indicative of further long-setting was seen in the latest week.