MNI Europe Pi (Positioning Indicator):........>

BONDS: MNI Europe Pi (Positioning Indicator): Futures Markets Renew BTP Shorts

- MNI's analysis suggests that as of the end of last week, futures market

structural positioning was flat-to-short across most of the EGB/Gilt space, with

most of the re-positioning in mid/late September reversed in the last 2 weeks.

- Structural positioning across the German curve remains mixed, with Buxl

standing alone in a long position.

- Gilt positioning over the past month has flipped from structurally long, to

short, back to flat again, reflecting shifting optimism over a Brexit deal.

- The setting of Italian BTP shorts last week helped reverse the brief mid-Sep

move to flat positioning, now back to structural shorts.

- Futures markets remain structurally short French OATs, with a reduction of

longs last week slowing upward progress from a deeply net short position.

- For complete report see email or visit https://tinyurl.com/MNI-PI-09102018