*** Hearing that sharp spike in................>

EGBS: *** Hearing that sharp spike in core/semi-core EGB futures this morning

following weak Eurozone PMIs comes on the back of short covering.

- Futures volumes indeed spiked following German and Eurozone PMIs, though will

have to see what happened in open interest to help confirm whether positions

were closed out.

- Interestingly, MNI Positioning Indicator suggests that while positioning

doesn't look particularly extreme either way, short setting had been the theme

in the week through yesterday, with shorts set on Bunds, OATs and Gilts.

- Furthermore, Schatz, Bobl, Buxl, and BTP positioning suggests that longs were

reduced in the preceding week.

- Net Bund futures positioning, while flat, came into today at flattest levels

of 2019 and on the verge of net short territory.

- See charts here (second chart is a shorter-term Bund positioning chart):

https://emedia.marketnews.com/egb_positioning_apr_18_2019.JPG