Good morning all.
Fear of Syria attack certainly having an impact on bonds during yesterdays action. Although the buying appeared to be triggered by very poor Durable Goods initially.
So in short we'll be having a little battle this week between the taper sellers and the middle east conflict buyers. Add to that the fact it's roll over time I think we will have quite an unpredictable remainder to August.
Treasuries don't seem to be much changed from lastnights Eurex close. So the ball is in European hands this morning.
TY
€ curves behaved as you would expect in this current up move...All except Bobl/Bund spread. Bobls appeared to out perform. I'm going to be extra cautious until roll is complete now.
€ teds, Bobl relative strength has impacted the bobl ted as the up trend appears temporarily broken whilst Schatz ted remains range bound. I would expect the Schatz ted to follow downwards if the Syria situation gets uglier.
On the Data front we have IFO to look forward to. Italian Auction may be worth watching too.
Good luck
L
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