30/08/2013

Another bitty week comes to an end. U.K. voted on more evidence before bombing the bad man in Syria. So early morning take back of Flight To Quality could be on the cards for bunds.....Then again its a friday and shorting them can still be done next week if we're still going for the Sep Taper play. Positive GDP data seemed to be shrugged off after the immediate sell down.

Ten year, nothing to suggest we will open too far from lastnights close. 

Bund, this weeks high in focus 140.95 if we stay above 140.60/65 area for any length of time.

 

€ curves, drifting lower at present in line with long end flight to quality bid although all sitting on a long term support. I'm reluctant to play from a Steepening bias today.

€ teds, the bobl ted is beginning to look heavy. I'll be very wary of being long for any length of time today.

 

In short, its August (still(just)) Its month end, its a Friday and bombing a country is on the agenda. The macro picture tells me to be short bonds, the geo politicital tells me not to be short bonds......These may not be the days that you make your best PnL, but its days like this that earn you your living!

 

Data today - EU Unemployment rate and Consumer confidence of note this am. LTRO's have lost their ability to cause volatility but they're still out today.

 

Good luck

L