So we got the expected volatility last week as the ECB delivered on the promise that the market was expecting, and this in turn lead to Euro strength, as we traded above 1.28. As far as Bonds are concerned, we had a big sell of and traded 139 handle, on the new Dec12 Bund contract, its been a long while since we have had sub 140 prints in the Bund, and is a definite sign of more risk appetite.
We dropped as low as 139.42 in the Bund, on the back of the proposed Bond purchases from the ECB, but we pushed up over 100 ticks on Friday as US Non farm payroll disappointed, and was a timely reminder that the Global Markets are still sluggish and there's still along time till things will really turn around.
Have bounced twice from 139s, I expect mid 139s to be a buy as I cant see us falling too much more in this Bund.
Points of interest in the Bund to the Upside is 140.94-141, 141.38 and 142.48 to the down side, 139.42, 140.63.
Its a similar way Spreads pushed up on the back of Draghi actions, but faded this move on the disappointing non farm payrolls. I was trading the Mar14Jun14 quite a bit and was selling it up the way up from 7.5s to 8.5s, and this worked out as it came back down to 7-7.5s.
It was a similar story along the curve.
Looking forward, we have gone back to the sideways low volatility markets but looking for further progression out of Europe as well as FOMC press conference and projections on Thursday.
Thoughts and commentary on daily market action, plus my trade log in equities and futures.
Subscribe to:
Post Comments (Atom)
Front month WTI Futures plunges to negative $37 as storage costs rocket
It was a move of epic proportions in the front month WTI Crude futures, the significance of which is not really known of yet, but was incre...
-
Much has been said about the new phone and the response on the surface seems exactly how you would expect it to be. Regardless of what Appl...
-
In the previous ECB meeting we had a split decision on whether to cut rates further or not but today Mario Draghi said the council decided ...
-
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 tim...
No comments:
Post a Comment