EXECUTIVE SUMMARY:
European bond future structural positioning has mostly edged toward shorter territory in the first two weeks of October amid significant (largely Gilt-led) volatility. Last week's trade saw shorts set and "longs reduced across the board.
Full PDF Analysis:
- GERMANY: Schatz and Bund have swapped structural positioning since our last biweekly update: Schatz is now short (had been flat) while Bund is now flat (had been short). Bobl positioning remains flat, with Buxl still short. Last week's trade was mixed, with the shorter end of the curve (Schatz and Bobl) seeing longs reduced, with the longer end (Bund and Buxl) seeing fresh shorts set.
- OAT: Positioning continues to flip between flat and short, with our latest update showing short positioning. Longs were reduced last week.
- GILT: Positioning has been moving away from the extreme shorts seen in the wake of late September's mini-budget. Longs were reduced last week.
- BTP: Structural positioning remains the most short in our MNI Pi matrix for another week. Longs were cut last week.
