Barclays Bank: Holds a moderately optimistic attitude towards the extension of European futures exchange bonds from September to December.

Barclays Bank strategists hold a moderately bullish outlook on the rollovers of German government bonds, bourbon whiskey, Schatz, Italian bonds, and Austrian bonds, after establishing short positions during the decline in July. The strategists noted that as contract prices rebound from the lows of late July, some short positions may have recently been closed. At present, we believe that CTAs and momentum investors may generally hold a certain number of short positions in many near-month contracts, the strategists, including Max Keeson, stated. "Any operation that rolls short positions into inverse contracts may put greater upward pressure on the rollover contracts before the notice period begins." Since early July, German government bond futures prices have continued to decline, while the open interest has increased, indicating a rise in short positions; some short positions have been reduced. Barclays Bank indicated that rolling remaining short positions into inverse contracts may increase the profit pressure from rollover trades.