16/08/2013

New Lower lows yesterday in bonds. Equities also beginning to look a little heavy.
Mini SnP

Bunds

Ten year

I see momentum in Eurex bonds still strong for steepening but wouldn't buy any spreads here.....Especially on a friday. Need to see bunds continue to build a base here and get above 140.28 before I consider putting on any flatteners. So might be a quiet day here for me.
€ Curves

€ teds continue on an upward trend

U.S. ten year continues to outperform Bunds, now at the pre taper talk range low. Is this a good place to sell 10s over bunds? September tapering seems popular veiw but is it priced in. Most of this retrace has come from the unexpected good news from Europe.

 

Light data day, Eurozone CPI and ECB LTRO repayments the main focus.

 

Good Luck

L