No Ukraine tape bombs.
Good bund auction taken in its stride.
Still on a fade bund rallies theme.
Ten Year 30min
bund 30min As I type this bonds start to make new lows on the day. I'm reluctant to step in front just here despite have a congestion area in bunds ~142.90. I'm not likely to position against this until we get down to 70....The speed that it makes it down there also to be considered. This slow grind is using no energy. I need to see some speed to the move, then watch for momentum to slow back down again.
Current down move I suspect is related to the budget with Gilts leading the way.
€ teds
Been trending lower, shortend story must be driving this as bonds off from fear buying but Bor seems to be drifting more so. However as the bonds now making new lows the bor stands still. So the move I expected yesterday is now happening. For a quick tic these maybe worth selling right now. Although short bor long bonds will not be a good starting point for this afternoons FOMC. So if I get any on I'll be aggressive in getting out.
€ curve, Current down move could give us a chance to place longer term bets on more curve flatteners, whilst short term trend is to continue steep. Obvious 10b taper likely to encourage more curve steepen. So I wont be selling these spreads infront of Fomc as any knee jerk over selling in long end could give better value.
Will be interesting to hear about the Forward guidance and what that does to the 14s 15s 16s in Eurodollar.
I can't look at everything so here is a couple Eurodollar things i'll keep an eye on.
Good luck
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