Yields come back after Sell off

Last week was a pretty big week for Yields as they reached very low levels in the Euribor curve and the flattest I've seen it on the back of negative rate talk. I took the opportunity to get long and I was very long having averaged in 5 prices or so, and the much needed pullback arrived slowly but surely which gave me overall a scratch I would say, but in hindsight this was a good trade, but I got out too much of my position too early. June's ECB rate meeting is likely to be a busy one with Draghi pretty much saying there is going to be further easing in this meeting. With poor PMIs from European nations it seems that some form of easing will be on the cards, whether it be a rate cut or QE remains to be seen.

This week has been very quiet and today has been one of the quietest days I've seen in a long while, with the UK and US shut on Monday volumes have been very light. There hasn't been much to do and its a matter of churning out what ever you can and waiting for hopefully some volatility to return to these markets.

Complacency seems to be rife with the VIX at 11.65 and the VXX at 35, sellers don't seem a match for the buyers as large Cash pools within companies and on the sidelines will just keep this Stock Market going higher and higher, and so at the moment it seems that any kind of correction will just be met with a barrage of buyers. Though the contrarian view would suggest that it is for this reason we will get some kind of correction, although it doesn't look likely given the current evidence.