SS on BOE minutes

brucemole

brucemole

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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 ?
 
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.
 
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.
 
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?
 
so people can actually trade it and show some size. the market is not designed around the needs/wants of locals.
 
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
 
Nah, I am not... Wanna go long without being short LIBOR/SONIA. Don't like the shenanigans in the repo mkt either.
 
Are there exchange traded SONIA futures then or is it OTC? I'm aware of EONIA on LIFFE...

Or more likely I've missed something obvious!
 
No end in sight either I think!

Found SONIA listed on my system but I can't even bring the market up for some reason.
 
What's your background lads? I've been back office for 6 years and been a local for 4 years.

I still feel like I got a lot to learn in money markets as I haven't had the training of a grad program etc. Other than trading euribor and short sterling as a local my only experience of money market instruments is from academics.

Have you lads been at (or still at) investemnt banks etc.
 
I am at a fund, not IB, not that it's that much better... Been doing it for arnd 4 years now.
 
I'd imagine it's a lot different to locals trading martin. We got a 2 week induction to the markets, 2 weeks on simulator then onto the live market. At our shop 2 lads out of 50ish hit the ground running and made money from day one. One used to work at Deutsche Bank.

I did all the cash in my first 3 months, stumbled along for another 3 in small negative terittory and was all but gone. The shop then brought in a lad from an IB to manage his own team, he financed me and put me on a split deal. Without that lad i'd be back in back office now

Of the new lads (no trading experience before joining) there are only 3 of us left now.

Locals don't tend to be too helpful to eachother I think, as there is a competitive edge. The lads with floor trading experience tend to keep themselves to themselves. We'd never discuss our positions with eachother.
 
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