A 60 handle in Oil finally took the shackles of the Equity markets as ES dropped 1.5% and other Indices fell over 1% too. T- notes pushed above 127 in the March Contract and Bunds traded above 154!!
Bonds keep catching a bid as risk aversion takes place. Whats crazy is that Equities are just marginally off all time highs, so if we get any type of real correction, its safe to assumes Yields will continue to get crushed, and the curve will continue to flatten.
Personally I think that buying the dip in in Eurodollar Spreads is the play as it is likely that rates will tighten slightly next year as the Economy picks up steam, and cheaper Oil will only help that.
I've found it tough recently, cause you had a massive buy the dip yesterday and today we maintained the downside momentum, tough to tell which market you will get. I think there should be more downside to come but I don't think the dip buyers are done yet and its likely there will be choppy action till year end.
STIR Spreads remain flat, with a slight pick up in volume in Short Sterling, Although not enough to get me involved as much, I will be trading it light until next year where I hope for a pick up in activity.
Bonds keep catching a bid as risk aversion takes place. Whats crazy is that Equities are just marginally off all time highs, so if we get any type of real correction, its safe to assumes Yields will continue to get crushed, and the curve will continue to flatten.
Personally I think that buying the dip in in Eurodollar Spreads is the play as it is likely that rates will tighten slightly next year as the Economy picks up steam, and cheaper Oil will only help that.
I've found it tough recently, cause you had a massive buy the dip yesterday and today we maintained the downside momentum, tough to tell which market you will get. I think there should be more downside to come but I don't think the dip buyers are done yet and its likely there will be choppy action till year end.
STIR Spreads remain flat, with a slight pick up in volume in Short Sterling, Although not enough to get me involved as much, I will be trading it light until next year where I hope for a pick up in activity.
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