24/09/2013

Good morning.

All about the doves talking yesterday yesterday.
Draghi - Rates will remain at current or lower levels for an extended period - Prepared to use any instrumentincluding another LTRO.
Whilst The Fed's Dudley said the US needs very accommodative monetary policy.
Fed's Lockhart - still a long way before the Fed can claim it has reached its objective of maximum employment - Fear the US is losing its economic mojo.

Obviously bonds and rates went bid. Huge flattening in euribor curve.
US tens is tic off from eurex close so I anticipate a strong start to the Eurex open.

 

If bund stays above 138.70 early then its upwards test of last weeks high.

€ curve continue flattening trend as you would expect with strong upward rally.

€ teds, Euribor staying strong after Draghi LTRO comments.

 

IFO this morning before a host of US data including Consumer Confidence.

US 2 year auction this afternoon aswell.

 

Good Luck

Lee