Taper day apparently.

Good morning all.
Its gonna be a long day today. MPC minutes at 9:30 worth watching whilst the headline act is at the other end of the day.
Small drift lower in bunds yesterday seemed to help perk up the curve. I think Zew was an influence  for that move as it came in slightly better than expected. We closed just above support and I expect us to open a little higher.
TY

Bunds, I feel the trend is higher and that 10bln taper is considered priced in. So smart money would be on buying any dips as I see no risk of it being larger than that. There is the risk it could be 0 though given recent disapointing data.

 

€ curve Long term 2s10s looks to have broken the uptrend (steepening) and yesterdays drift lower in bunds gave opportunity to fade into flatteners....If brave enough to hold thru FOMC.  5s10s looks strong tho as it heads to contract highs.

€ teds just ticking along. Range trade although I'd be careful of having too many boblteds on long as the bobl seems very strong on the curve so a bond up move could see the Euribor fail to keep pace.

 

Good luck

L