SS on BOE minutes

brucemole · Feb 18, 2009, 6:38am

Any thoughts on the short sterling move today lads? m9 has taken a real hiding. Front box rallies from yesterdays -13 to +5 at it's highest today.

Is buying longer dated stuff and selling the front end the trade now ?

arabianights · Feb 18, 2009, 6:49am

I like to think of it as people getting some ****ing sense and noticing the bank of england were effectively saying they weren't going to cut rates more, if at all.

Martinghoul · Feb 18, 2009, 7:25am

Agree with Arabian on that... Basically, it's QE time with no more rate cuts. I think people (including myself) didn't expect them to do QE while rates are above 0. I can see now that they don't care about little things like that any more. On top of this, FRA/SONIA has been going bonkers again (for a whole variety of reasons), so basis widening is to blame for some of the selloff.

On a a sidenote, big question with QE, of course, is what sector paper they buy. Apparently, the minutes state that the DMO will issue what the BoE will buy and vice versa. Sounds like chicken and egg to me, so I find myself very confused about gilts here.

tightstops · Feb 18, 2009, 8:05am

wow this contracts like watching paint dry. over the course of one and a half hours its just expanded its trading range from 3 ticks to 4 and next week theyre getting rid of the half ticks - whats the thinking behind this?

gooseman · Feb 18, 2009, 8:13am

so people can actually trade it and show some size. the market is not designed around the needs/wants of locals.

tightstops · Feb 18, 2009, 8:29am

i suppose it will become the ultimate contract for those of a certain trading style as a result volume will probably go through the roof on it

brucemole · Feb 18, 2009, 9:13am

today has been busy by recent standards tightstops

clbfjc · Feb 18, 2009, 11:41am

hi, are you guys trading the QE as outrights or spreading?

Feb 18, 2009, 6:38am	#1
brucemole Member Member Since Oct 2007 67 Posts	SS on BOE minutes Any thoughts on the short sterling move today lads? m9 has taken a real hiding. Front box rallies from yesterdays -13 to +5 at it's highest today. Is buying longer dated stuff and selling the front end the trade now ? __________________ Maria Bartiromo/Erin Burnett spread trader

Feb 18, 2009, 6:49am	#2
arabianights Legendary Member Member Since Jan 2007 6,782 Posts	Re: SS on BOE minutes I like to think of it as people getting some **ing sense and noticing the bank of england were effectively saying they weren't going to cut rates more, if at all. __________________ World's leading STIRs chatroom** - www.propboards.com - register, then click on chat. Don't let the lack of posts on the forum put you off - the action happens in the chatroom. Targeted at locals, but hedge funds, brokers (including IDBs), market makers, and a few sizable amateurs are all represented. When it's quiet, banter is encouraged and anything goes. No nuisance spread betters please. Anyone else welcome.

Feb 18, 2009, 7:25am	#3
Martinghoul Legendary Member Member Since Feb 2009 2,456 Posts	Re: SS on BOE minutes Agree with Arabian on that... Basically, it's QE time with no more rate cuts. I think people (including myself) didn't expect them to do QE while rates are above 0. I can see now that they don't care about little things like that any more. On top of this, FRA/SONIA has been going bonkers again (for a whole variety of reasons), so basis widening is to blame for some of the selloff. On a a sidenote, big question with QE, of course, is what sector paper they buy. Apparently, the minutes state that the DMO will issue what the BoE will buy and vice versa. Sounds like chicken and egg to me, so I find myself very confused about gilts here. __________________ "Insofar as I may be heard by anything, which may or may not care what I say, I ask, if it matters, that you be forgiven for anything you may have done or failed to do which requires forgiveness."

Feb 18, 2009, 8:05am	#4
tightstops Senior Member Member Since Aug 2006 245 Posts	Re: SS on BOE minutes wow this contracts like watching paint dry. over the course of one and a half hours its just expanded its trading range from 3 ticks to 4 and next week theyre getting rid of the half ticks - whats the thinking behind this?

Feb 18, 2009, 8:13am	#5
gooseman Legendary Member Member Since Feb 2008 1,809 Posts	Re: SS on BOE minutes so people can actually trade it and show some size. the market is not designed around the needs/wants of locals.

Feb 18, 2009, 8:29am	#6
tightstops Senior Member Member Since Aug 2006 245 Posts	Re: SS on BOE minutes i suppose it will become the ultimate contract for those of a certain trading style as a result volume will probably go through the roof on it

Feb 18, 2009, 9:13am	#7
brucemole Member Member Since Oct 2007 67 Posts	Re: SS on BOE minutes today has been busy by recent standards tightstops __________________ Maria Bartiromo/Erin Burnett spread trader

Feb 18, 2009, 11:41am	#8
clbfjc Senior Member Member Since Apr 2008 100 Posts	Re: SS on BOE minutes hi, are you guys trading the QE as outrights or spreading?

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