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

BONDS: MNI Europe Pi (Positioning Indicator): Gilts Squeezed, German Steepener

- Market volatility in November has seen a short squeeze on Gilt futures and a

potential steepener develop in structural positioning on the German curve.

- German futures appear to be structurally positioned for curve steepening, with

the positive differential in Schatz (long) relative to Bunds (flat) in the past

two weeks reaching the widest levels seen in 2018. Last week saw longs set in

Schatz and short cover in Bunds.

- Bobl structural positioning remains flat, though there was some short covering

last week. Buxl positioning is back to flat, with longs set last week.

- OAT structural positioning is in flat territory, after briefly touching

structural long territory two weeks ago. Last week saw longs set.

- Gilt structural positioning remains the shortest since April despite an

apparent short squeeze late last week (OI down, price sharply up).

- Though longs were reduced last week, BTP structural longs remain highest since

late July.

- For complete report see email or visit https://tinyurl.com/MNI-PI-20112018