Thursday, 24 May 2012

New lows in Spreads

With the raft of poor data out this morning, we got some strong selling pressure in all parts of the curve. The 2s-10s spread hit an all time low as the Bund hit a high of 144.58. This coincided with very weak euro, which hit a low of 125.12! Euribor spreads at the front end has been under pressure with the front few spreads in the negative, the Mar13Jun13 spread, went trading 1s, and considering I was long before this it was quite stressful as it looked like it was going to break to the downside, but as often is the case we bounced back up which gave the opportunity for a scratch, to live to fight another day. Below is some video analysis:
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