On Thursday we had a dip of almost 100 ticks to sub 137 in the Bund as seemed the Greeks passed there austerity measures, on friday we rallied up back above 138, and as high of 138.70 as it was now apparent that they will not agree to pass these measures as there was mass protests by the Greek people. Finally over the weekend the vote was passed and we drop 100 ticks again in the Bund and now trading 137.78.
Now where we go next is anyones guess in this casino we call the market. Its hard to form a medium term view as we are held hostage by the Greek indecision. Technicals go out the water some what as another rejection could push this higher again. We seem to have found an area of value in the 137.70-80 region as this has been an area of significant trade over the past week.
Like many I dont think this is by any way finished and we will continue to have volatility in the bund on the back of continuing comments coming out the Greeks, the EU and IMF and I suspect that we will once again trade back into the 138s, even 139s in the Bund again at some point soon.
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