Nothing of note overnight so I expect bunds to open inside the corridor of uncertainty. With no significant data out today we could see one of two things. Either a very boring nothing day, or one that catches us out if we boredom trade! Drift to low or hi then gain real momemtum with stops triggered from a break of last weeks range. So make sure you keep your powder dry. We could be at the mercy of very thin volume and a central banker comment.
Equitity indices continue to power on so I still lean in the bonds off camp, looking for a break below 20 in the 10year and the mid 20s in the bund. Otherwise I will be fading a unit of steepeners around the lo 60s in bund.
Teds continue in slow grind higher due to Euribor strength. Happy to play from both sides of the range, although more defensive on shorts.
Be lucky
L
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