Bunds are pushing to the top of its 123-124.50 range trading right now at 124.11, after failing to push further below 123. Bonds in general all shot up as stock markets around the world sold off, after auto maker plans got rejected. To be honest its about time, they put a hold on their printing presses as the government cant bail out the world. The stock drop was expected after such a sharp run up. Problems havent gone away, some pullback was expected, and i think we still have some way to go.
Whilst bunds are outperforming shorter dated bonds, Euribor spreads however are still rising. The Sep10-Dec10 euribor spread has shot up to a high of 29, I cant see it going much higher then that, and I am still willing to keep shorting it all the way up as I believe we will pullback a few ticks soon. Time will tell. I like trading the Mar11-Jun11 spread right now as its been ranging from 20-21 for a couple of days. Liquidity is low though, but if you can get filled, the range is very good to play, and is proving to be quite profitable at the moment.
The rest of the week should be very interesting, with ECB, Non Farm and G20. Lets just hope we don't get riots on the streets, cause that's the last thing we need.
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