As expected the BoE left rates at hold but the real market shocker was the discontinuation of its bond buying program, which lead to a 200 point reversal in the Gilts.
In fact this was welcome news for me as it brought about some very good trading opportunities in the short sterling contracts, with some much needed volatility and volume coming in to these contracts. Spreads ranged well, where as with the Euribor spreads we had a slight bias to the upside, as we come of the lows.
Looking forward Im expecting a quiet day today to finish of the week, as we approach august, and very light trading with earnings next week providing the only real stimulus for any real moves, which would be more directed to the stocks markets rather then the bond market.
Stocks continued to look weak yesterday, with the DOW unable to hold any gains. The futures are red this morning, and if we continue like this then it will be the 5th consecutive down week for the indices, a break of 8000 is key to see if we will test march lows.
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