MNI Europe Pi (Positioning..............>

EGB OPTIONS: MNI Europe Pi (Positioning Indicator): Buxl Breakout

- Amid a move to historic highs (i.e. record-low cash yields) for EGBs and

Gilts, structural futures positioning remains flat-to-long. Over the past two

weeks since our last update, a significant increase in longs in the far end of

the German curve, and reduced longs in Bunds and BTPs stand out.

- GERMANY: Buxl positioning is at its longest since March, with longs set last

week. Schatz shorts have receded somewhat (amid short covering last week), with

positioning now flat, joining Bobl which remains steady at flat as has been the

case most of the summer. Likewise, Bund longs have been pared back from

multi-month highs, now registering flat.

- OAT: Positioning stays long, with the structural long uptrend still in place.

- GILT: Structural longs are back after the contract spent six weeks at flat,

with further longs set last week.

- BTP: Longs, seen for most of the previous 5 months, have finally retreated,

with positioning now flat.

- For full analysis see: https://emedia.marketnews.com/MNI-PI05082019.pdf