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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
MNI Europe Pi (Positioning Indicator): A Short Covering Rally
EXECUTIVE SUMMARY:
- The bond rally late last week after the BoE's surprise decision to hold rates was accompanied by short cover in the European futures space.
- That said, structurally, positioning remains biased to the short side across multiple contracts, contrasting with two months ago when several contracts were in structurally long territory.
FULL PDF ANALYSIS:
- GERMANY: Positioning has remained fairly flat across German futures since our last update two weeks ago. The most noteworthy exception is Buxl, which moved to short from structurally flat previously. Buxl, as with Schatz and Bund, saw short cover last week, while Bobl bucked the trend with longs set.
- OAT: Structural positioning has moved to very short vs flat previously. Last week saw short cover.
- GILT: Structural positioning in Gilts has contrasted with most other contracts, moving closer to flat/long in the past couple of weeks - now at flat. Last week saw short cover.
- BTP: Structural positioning is now very short, having moved from flat two weeks ago, and with longs steadily reduced since early Sept. Short cover was seen last week.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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