Wednesdays Fed meeting was pretty much as expected although there are those who are looking for an earlier rate increase, possibly next year. This steepened the yield curve with Bunds down 100 points plus since, and Euribor and Short Sterling spreads rising across all combinations. As I said before, with Spreads at such low levels the only trade was to buy, as the risk is to the upside, and downside risk was minimal given that we are at super low rates everywhere. So luckily going into the FED I was long, and took my small profit. Since then I have been selling into the rally selling 4s and 4.5s in Mar15Jun15 and 5s and 5.5s in Jun15Sep15, taking small profit on both.
Elsewhere Stocks took a dive initially on Wednesday, but as usual are ramping back up and are on the verge of making new highs in the US. Seems like there is nothing that will get in the way as the amount of cash on the sidelines has to go somewhere and so any dip will be a buy in my opinion regardless of anything that goes on. But I guess its that complacency which marks maybe a contrarian play. But by the looks of it shorts keep getting whacked!
Quite a bit of data out next week, so hoping for some good moves!
Elsewhere Stocks took a dive initially on Wednesday, but as usual are ramping back up and are on the verge of making new highs in the US. Seems like there is nothing that will get in the way as the amount of cash on the sidelines has to go somewhere and so any dip will be a buy in my opinion regardless of anything that goes on. But I guess its that complacency which marks maybe a contrarian play. But by the looks of it shorts keep getting whacked!
Quite a bit of data out next week, so hoping for some good moves!
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