TY 240min
What a very neat chart.
Schatz 240min
Whilst the Bund continues its slow climb up the wall of worry Schatz remains heavy. With very little reason for short end to move higher Curve trade ideas are simple. Put on flatteners at every slight pull back, it could be argued that just buying bunds is the same thing........But it does seem like there could be extra mileage in selling Schatz. Something to watch out for over the thin December markets is erratic stop execution. Occasionally you get ridiculous moves so I'll be keeping an eye on this trade for 2 reasons. Gap up bunds extensions and or large Schatz sell stop orders triggered. Not saying they will happen.
Having said all that, Bund does seem a tad exhausted on the upside just now and could do with a little consolidation before pushing on. Geopolitics aside pre ECB meet week seems as good a time as any for that rest.
€ curve
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