I expected a bit more of a sell off in U.S. treasuries overnight with the likelyhood of a strike on Syria beginning to look less on the cards. The fact that it's not cut and dry yet is probably holding the bonds up for now.
tya
Bunds, largly sideways day yesterday a typically quiet post non farm monday. I'm looking for a break of 137.35/31 area to be a target to increase my Steepening bias. Will also look to fade any moves up to 138.00. Everything between is just comission and chop.
€ curve, buying dips
€teds vs Schatz 14 bors continue to trend higher as you would expect in improving economic conditions. Whilst war premium has had an effect further down bor expiries vs Bobl. Could be value here in buying bobl teds....But with inconsistant liquidity provided by the algos. Back bors are always prone to big overshoots.
Not sure Italian GDP will have too much impact on the markets today unless shockingly bad, we do have a Bund auction to watch out for.
BTP Bund spread
Have fun
L
No comments:
Post a Comment