***Federico Manicardi and Guneet........>

BUNDS/CURVE: ***Federico Manicardi and Guneet Dhingra at Morgan Stanley assess

the upcoming Eurex futures contract calendar rolls. They suggest:

- Schatz. Morgan Stanley is "mildly bearish" believing that there is a long bias

in positioning. Plus, MS believes that the Dec-19 Schatz is cheap to surrounding

issues and the Dec-19 CTD.

- Bobl. MS is "mildly bullish". While they also see a mildly long bias, which is

bearish, the "CTD yield spread is close to the richest level since the OBL 0%

Oct-22 issuance"

- Bund. MS are "neutral". There is bearish positioning but "evidence from

previous cycles suggests that the net basis spread is relatively high and is

likely to prevent the roll from cheapening significantly".

- Buxl. MS are "mildly bearish" with good long positioning and the "roll is

moderately rich vs fair value". Previous calendar cycles shows some tendency to

cheapen close to first delivery.

- BTP and OAT. Both "Mildly bearish" on positioning and rolls rich vs fair

values. OAT rolls have tendency to cheapen close to first notice.