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SocGen's EU Governments Weekly Bond Postioning 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, Italy's BTPs and Spain's SPGBs sovereign bonds, while net sellers of France's OATs, said Societe Generale.

Bunds saw net buying over the week, continuing the trend of the previous 14 weeks, driven by non-domestic investors. Domestic investors were net sellers, extending the selling trend from the previous two weeks, with activity concentrated in the 20y+ sector, where banks and asset managers were the most active participants. Non-domestic investors were net buyers for the 15th consecutive week, primarily in the 5-10y and 20y+ sectors, led by asset managers.

OATs experienced net selling, reversing the buying trend observed in the previous week and driven by non-domestic investors. Domestic investors were net buyers for the 19th consecutive week, with activity concentrated in the 10-20y and 2-5y segments, led mainly by asset managers. Meanwhile, non-domestic investors were net sellers, reversing the prior week's buying trend, driven by hedge funds and banks, with activity focused mainly in the 5-10y maturity segment.

BTPs saw net buying, continuing the buying trend from the previous two weeks and driven by non-domestic investors. Domestic investors were net sellers, reversing the prior week's buying trend, with activity concentrated mainly in the 20y+ segment and led by asset managers. Non-domestic investors remained net buyers for the fifth consecutive week, driven primarily by hedge funds and asset managers, with activity focused on the 2-5y and 10-20y segments.

SPGBs saw net buying, extending the buying trend of the previous seven weeks, driven by domestic investors. Domestic investors were net buyers for the third consecutive week, with activity concentrated in the 10-20y and 5-10y sectors and driven primarily by banks, insurers, and asset managers. Non-domestic investors were net sellers, reversing the buying trend from the previous seven weeks, with activity focused mainly in the 20y+ segment, driven largely by asset managers and banks.

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