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###POV - BREXIT SHORT SQUEEZE: The............>

GILTS
GILTS: ###POV - BREXIT SHORT SQUEEZE: The combination of rising prices and
falling open interest suggests short covering in Gilt futures was prevalent
Thursday amid Brexit-related volatility - but structural shorts remain.
- Dec18 future Open Interest dropped 0.97% Thursday (the biggest drop since Oct
12), while the price rose 1.12% (a contract high).
- Open Interest on Wednesday was 822,323, highest since early September
following the roll; it ended Thursday at 814,323.
- Our MNI Pi indicator suggests that as of close Thursday we were still around
the biggest structural net shorts on Gilts since June.
- For chart see: https://tinyurl.com/MNI-GILTPOSNOV18
- This suggests that a continued short squeeze could still be in the offing.
- Our positioning indicator update on Nov 5 had suggested Gilt shorts had been
building (9% surge in open interest in in the preceding two-week period, amid
falling prices - see: https://tinyurl.com/MNI-PI-06112018)
- Next full Europe MNI Pi positioning update comes out on Tuesday 19 Nov.

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