European Rates Watch: EGB supply, positioning & flows

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European Rates Watch: EGB supply, positioning & flows

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European Rates Watch

EGB supply, positioning & flows

Futures positioning: German 2s at number one spot 15 June 2026

Outstanding: Across the German curve, DU remains the most net-long contract (Exhibit Rates Research

21). Positioning is net short in OE and RX with a similar magnitude, but small net long in Europe

UB. Investors remain net long in IK futures and have moved net long BTS contracts. OAT

European Rates Research

net positioning remains short. MLI (UK)

Edvard Davidsson

Weekly change (Wed-Wed): Net positioning turned longer in DU contracts, spurred by Rates Strategist

a reduction of shorts (Exhibit 22). OE contract positioning moved shorter as longs were MLI (UK)

edvard.davidsson@bofa.com

taken off. RX net positioning was largely unchanged. In UB, BTS and IK contracts, net

Nathan Thomas, CFA

positioning moved moderately longer, mainly driven by a reduction of shorts. OAT net Rates Strategist

positioning was largely unchanged. MLI (UK) nathan.thomas@bofa.com

FXRS: Eurozone sentiment turns bearish SphiaRates StrategistSalim

In our latest FX and Rates Sentiment Survey, 11 Jun 2026, Core Euro Area duration MLI (UK) sphia.salim@bofa.com

exposure and sentiment reverted to neutral levels, moving down in magnitude from

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moderately overweight/bullish positions, respectively (Exhibit 41). Part of this could

relate to profit taking on longs in EUR rates vs UST, as those positions were reduced.

Duration exposure in Peripheral Europe moved underweight from an overweight position,

marking the first underweight exposure point in the survey since Jan-24 (Exhibit 42). For a list of our open trades as well

This contrasts with above positioning in futures.