Financial Wire

SocGen's EU Governments Weekly Bond Positioning Report

-- The weekly analysis of flows into eurozone government bonds shows that for the week ended last Friday, investors were net buyers of Germany's Bunds, Italy's BTPs, and Spain's SPGBs, and net sellers of France's OATs, said Societe Generale.

-- Bunds saw net buying over the week, continuing the trend of the previous seven weeks and driven by both domestic and non-domestic investors. Domestic investors were net buyers, extending an 11-week buying streak, with activity concentrated in the 2-5y and 20y+ sectors, where asset managers and banks were the most active participants. Non-domestic investors were also net buyers for the eighth consecutive week, primarily in the 5-10y sector, led by banks and hedge funds.

-- OATs experienced net selling, reversing the trend observed over the previous seven weeks and driven primarily by non-domestic investors. Domestic investors were net buyers for the 12th consecutive week, with activity concentrated in the 10-20y and 20y+ segments, led mainly by asset managers and insurers. Meanwhile, non-domestic investors turned net sellers after seven consecutive weeks of net buying, driven by banks and insurers, with activity focused mainly in the 10-20y and 20y+ maturities.

-- BTPs saw net buying, reversing the selling trend from the previous week and driven by both domestic and non-domestic investors. Domestic investors were net buyers, extending the five-week buying trend, with activity concentrated mainly in the 5-10y segment and led by banks. Non-domestic investors also turned net buyers, reversing last week's selling trend, driven primarily by insurers and hedge funds in the 20y+ segment.

-- SPGBs saw net buying, reversing the selling trend of the previous four weeks and driven by both domestic and non-domestic investors. Domestic investors were net buyers, extending the five-week buying trend, with activity concentrated in the 10-20y and 20y+ sectors and driven primarily by banks and insurers. Non-domestic investors also turned net buyers for the week, after being net sellers in the previous week, with activity focused mainly in the 20y+ and 10-20y categories and driven largely by insurers and banks.

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