Friday 11/10/2013

Good morning you lovely people.
Temporary truce in Washington, Janet Yellen - Seamless baton change over from Ben (I think) and FOMC minutes sounding ever so slightly like Taper is still on the cards for this year although without data it wont be at the next meet. No bad news rearing up anywhere else. So bear steepening is the game plan. This despite a good 30 year auction lastnight, I mean that was seen as a positive right? Confidence in the quality of the instrument as an investment.
mini snp

ty

Overnight US 10s drifted back to middle of recent range so I expect bunds will open a few ticks higher...If they stay below 75 this am I'll be confident of a test of 139.10. Continued out performance of U.S over German

bund

 

€ curve I'll be looking to fade dips in these providing no more shock news comes out from anywhere.

 

€ teds as with the curves the down trend broken I will be buying dips......Obviously careful of LTRO talk and Euribor inconsistent liquidity.

btp vs bund spread.....A couple of BTP auctions to watch out for.

German CPI could be of interest this am also looking at the Michigan Consumer Sentiment this afternoon.....In the wake of Gov shutdown this could come in quite negative. May be a factor to consider on my steepening trades.

 

 

Good luck all.

 

Lee