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... OATs Look Short, BTPs Long Into The Roll (2/2)

BONDS
  • OAT, after a spell in flat territory, has returned to structurally short. There was some short covering evident in the latest week.
  • Gilts are nominally in flat structural positioning but we would discount current readings as a result of distortions amid the quarterly roll (front contract is now Dec).
  • BTP structural positioning remains in long territory, in contrast to flat for most of the prior 4-5 months. Trade in the latest week was indicative of further long setting.

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