Morning after the day before

So the cut came yesterday instead of December. I won't bore you all with what was said. Its put far better here - http://blogs.wsj.com/moneybeat/2013/11/07/the-ecbs-rate-cut-five-key-takeaways/
Whilst we were all scrambling to buy Bobl and Euribor the U.S. GDP got missed. Very good number to go with the steady increase in improving data from our Transatlantic cousins. Like October shutdown never happened....But Taper could.

Bunds, yesterdays cut reaction broke to mini down trend that was forming in German 10 year. The maket has stabilized around the 141.82 area. Likely to see range trade til NFP this afternoon. Could be a good morning for long breakfast.

 

€ Curve, 2s10s & 2s5s held resistence on on the downward trendline pre ECB cut. I  see value in buying 2s10s now that the cut has happened most bond direction likely to focus on U.S. positivity which should see the long end lower.

5s10s continued it super strength by spiking some 40 ticks on the number before "mean reverting". I probably need it to come off a further 20 ticks to consider any size buying of that. I know trend is your friend and all that but I have to admit I'm a tad puzzled by Bobls popularity right now. Is it just being dragged up by the strength in red and green Euribor????

 

 

€ teds, Huge spike as someone bought all the Euribor for 10/12 ticks(tin foil hat points at Morgan Stanley(but that would be too obvious))  before the actual release and before the Eurex bonds could react. Its back in line now. Ready to continue tick higher...“we haven’t reached the lower bound”. Another cut maybe?

 

France downgrade by s&p so I'll look at the OAT vs Bunds

 

 

 

Have a nice day y'all

 

Lee