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SocGen's EU Governments Weekly Bond Positioning Report

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-- 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, France's OATs, Spain's SPGBs and Italy's BTPs, said Societe Generale.

-- Bunds saw net buying over the week, continuing the trend of the previous nine weeks and driven by both domestic and non-domestic investors. Domestic investors were net buyers, extending a 13-week buying streak, with activity concentrated in the 10-20y sector, where banks and asset managers were the most active participants. Non-domestic investors were also net buyers for the 10th consecutive week, primarily in the 20+y and 10-20y sectors, led by asset managers and banks.

-- OATs experienced net buying, continuing the buying trend observed over the previous week and driven primarily by domestic investors. Domestic investors were net buyers for the 14th consecutive week, with activity concentrated in the 20y+ and 5-10y segments, led mainly by asset managers and insurers. Meanwhile, non-domestic investors turned net sellers after seeing net buying over the previous week, driven by asset managers and insurers, with activity focused mainly in the 10-20y maturity.

-- BTPs saw net buying, reversing the previous week's selling trend, driven by domestic investors. Domestic investors remained net buyers, extending their six-week buying streak, with activity concentrated mainly in the 5-10y segment and led by banks. Non-domestic investors turned net sellers, continuing last week's selling trend, driven primarily by hedge funds in the 2-5y and 20+y segments.

-- SPGBs saw net buying, extending the buying trend of the previous two weeks and driven by both domestic and non-domestic investors. Domestic investors turned net buyers, reversing the prior week's selling trend, with activity concentrated in the 10-20y and 5-10y sectors and driven primarily by insurers. Non-domestic investors remained net buyers for the third consecutive week, with activity focused mainly in the 10-20y segment and driven largely by banks.

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