18/03/2014

Crimea past military fears as the global economy turn to financial sanctions to tell off that naughty Putin. So bonds drift aimlessly with a slight weaker tone there is a clear eye on FOMC Wednesday evening.

Ten year 30min

 

bund 30min

I see plenty of room down for bunds but with another disappointing CPI and an ever strengthening currency the short end is likely to stay a little bid. Draghi may be dragging his heels but a rate cut must be coming.

€ curve

Timing and size are everything....Too much too early is frustrating at best, expensive at worst. I will look to fade bund rallies and put steepeners on small. The short term trend has clearly turned. Only time will tell if it can crack through the longer flattening trend.

 

€ teds

 

Look out for ZEW this morning. Along with listening for Russian rumblings obviously.

Good luck.