European Rates Watch: EGB supply, positioning & flows

Research evidence excerpt

European Rates Watch: EGB supply, positioning & flows

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European Rates Watch

EGB supply, positioning & flows

Futures positioning: Steady with gradual short covering 22 June 2026

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

21). Positioning in OE and RX is net short, while UB shows a modest net long. In Italian Europe

contracts, investors are modestly net long BTS and moderately net longer IK contracts.

European Rates Research

Meanwhile, net positioning in OATs is marginally short. MLI (UK)

Edvard Davidsson

Weekly change (Wed-Wed): Net positioning was little changed in DU contracts Rates Strategist

(Exhibit 22). OE contract positioning moved less short as fresh longs were put on. RX net MLI (UK)

edvard.davidsson@bofa.com

positioning also moved less short as short positions were reduced, outweighing the

Nathan Thomas, CFA

volume of longs being closed. In UB contracts, net positioning moved slightly longer as Rates Strategist

shorts were reduced. We also saw this happen in IK contracts. BTS contracts were little MLI (UK) nathan.thomas@bofa.com

changed in net positioning, and OAT net positioning moved closer to neutral from short

Sphia Salim

as fresh longs were put on. Rates Strategist

MLI (UK)

EA Fund Managers: Inflows into short duration mandates sphia.salim@bofa.com See Team Page for List of Analysts

Weekly country flow data showed a divergence in fund manager flows between single-

country funds and Europe ex-UK mandates: the latter saw 4-week cumulative inflows

accelerate as a share of total assets, while Euro Area single country mandates

experienced outflows (Exhibit 32). This has been the case since around February. The For a list of open trade