Been a bit difficult this week, Volume has wained slightly, meaning its harder to get in and out of Spreads quickly, and they require holding for much longer periods. Also with the fall in the Bund, Euribor and Short Sterling Spreads have been pushing upwards, but its that slow grind upwards without the retrace, which can leave you bleeding money slowly, but without really knowing it!
With Mar14Jun14 spread coming down to trade 6s, when we bounced up to 7s I started to short small, it then went to 7.5s so I shorted more, and then it was looking like it was going to push 8s as well. This type of movement was replicated along the curve, and I ended up being short the whole curve from Mar14 to Sep15! Wasn't looking pretty but after some dovish comments from ECB officials mid morning provided the snap back I was looking for and luckily I managed to get out all my positions, for some profit at the end of it.
I don't see much change in the style of action we been getting going forward, but you can see there's many more players in the market which is great!
With Mar14Jun14 spread coming down to trade 6s, when we bounced up to 7s I started to short small, it then went to 7.5s so I shorted more, and then it was looking like it was going to push 8s as well. This type of movement was replicated along the curve, and I ended up being short the whole curve from Mar14 to Sep15! Wasn't looking pretty but after some dovish comments from ECB officials mid morning provided the snap back I was looking for and luckily I managed to get out all my positions, for some profit at the end of it.
I don't see much change in the style of action we been getting going forward, but you can see there's many more players in the market which is great!
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