Welcome all Short Sterling Traders!!!

[MrGecko]

Euro Libor V Euribor?

Take a look at the tiny spread on that, how relatively volatile it is in % terms, and then stop thinking when drunk

What the c0ck are you on about Euro LIBOR for? And why would anybody reasonable want to trade it anyway?


USD LIBOR vs EURIBOR

Eurodollar vs. 'bor

d!ck

p.s. reversed my GE spread; now short M9M0

 

[arabianights]

well for what it's worth there's been a lot of rm shorting 10 yr USD against 10 yr EUR today, both cash and govvies...

p.s. carling?

 

[MrGecko]

nah, Guscott was my personal fav

 

[Martinghoul]

well for what it's worth there's been a lot of rm shorting 10 yr USD against 10 yr EUR today, both cash and govvies...

p.s. carling?

Yep, I would bet that the ECB at this point sorta has to join the QE party. I think it's a decent risk/reward trade.

 

[brucemole]

Any thoughts lads? Short sterling steepening to continue?

Anyone any views on the z contracts? Are we going to see continiung liquidity issues at year end?

u9/z9/h10 butterfly has come in but still at +7 while all else around it are negative. Same with u10/z10/h11

Been looking at m11/u11/z11 against u11/z11/h12 box which is hitting some extreme levels. Has been possible to pay -12 there.

 

[Martinghoul]

Any thoughts lads? Short sterling steepening to continue?

Anyone any views on the z contracts? Are we going to see continiung liquidity issues at year end?

u9/z9/h10 butterfly has come in but still at +7 while all else around it are negative. Same with u10/z10/h11

Been looking at m11/u11/z11 against u11/z11/h12 box which is hitting some extreme levels. Has been possible to pay -12 there.

It's up to Merv... If he opens his big mouth again, we're gonna have more steepening and more failed auctions like the 49s today.

I think there's gonna be issues at year end, for sure, so I wouldn't be selling the turn too much, to be honest. Ultimately, it's up to whichever bank desk has the most skin in the game... That's my 2c.

 

[sterlingtrader]

The turn element should continue. I don't see Sterling going back to the days of no turn as long as funding issues are with us

 

[TheBigDog]

Been looking at m11/u11/z11 against u11/z11/h12 box which is hitting some extreme levels. Has been possible to pay -12 there.

Yup definate value there.

 

[sterlingtrader]

Any thoughts lads? Short sterling steepening to continue?

Anyone any views on the z contracts? Are we going to see continiung liquidity issues at year end?

u9/z9/h10 butterfly has come in but still at +7 while all else around it are negative. Same with u10/z10/h11

Been looking at m11/u11/z11 against u11/z11/h12 box which is hitting some extreme levels. Has been possible to pay -12 there.

Was that a typo? Did you mean the m10/u10/z10/h10 box. I get a nosebleed if i go any further out than that

 

[brucemole]

u11/z11 is relentless

 

[brucemole]

Was that a typo? Did you mean the m10/u10/z10/h10 box. I get a nosebleed if i go any further out than that

no mate, it's the green pack i'm looking at. I know what you mean though. Got a position in everything from m9 to h12 hard to keep it all together

 

[TheBigDog]

u9z9.. looks like that seller is back again today....24s must be a bit of a sell!

 

[sterlingtrader]

no mate, it's the green pack i'm looking at. I know what you mean though. Got a position in everything from m9 to h12 hard to keep it all together

i am disappointed that you haven't got anything on in the blues and golds. you must need a couple of 30 inch screens to keep an eye on all of that.

TheBigDog, that u9z9 seller has been relentless since the afternoon that CPI came out. the only thing that seems to have stopped it moveing any further is u9z9h10 buyer. i must admit it through me the other day when someone paid up 9's for a load on Tuesday evening only to see it come back to 7 now. the u9z9 seller has only moved teh spread a tick but it looks like he is winning. has helped that there has been buying of of z9h0 on dips as well

 

[brucemole]

How are you finding the market at the moment sterlingtrader/bigdog? Happy to have the full tick back?

You need your order book stacked at the moment to make ticks

 

[sterlingtrader]

How are you finding the market at the moment sterlingtrader/bigdog? Happy to have the full tick back?

You need your order book stacked at the moment to make ticks

bruce, i am glad the full tick is back, although by the end of it i had gotten used to the half tick. i'd like to have a quiet word in a dark alley with some of the guys at liffe.

i am finding that the algo's are still there which makes it trade a bit more like the euribor that it did pre-2008. the 'free money' aspect of sterling that i am sure we all used to love isn't there so much anymore as most stuff goes through at value and if not then it quickly becomes value. it has become more about taking a view than it used to. whatever happened to the days of not needing a brain to trade sterling?

you are right that it has become more about stacking your order book now. have your limits been reduced with the recent volatility (post Lehmann's)? mine were reduced along with an increase in VAR due to the vol. i didn't mind this when we were at half ticks, but now queing is more of an issue it has become a bid tedious constanly deleting orders to add other ones

 

[arabianights]

what inspires you guys to stay out of the whites?

 

[sterlingtrader]

it used to be the safety of the back of the curve and to a certain length the financial incentives of trading further out (exchange rebates), but with volatility being a curve-wide phenomenon now it's not so much of an issue.

i am active in the whites but it is more in-and-out trading. the further out i go the longer term it tends to be.

 

[TheBigDog]

@Bruce...

I never saw SS when it was oringally full tick.What I have noticed is how much better the market is now that it is Full-tick. Previously nothing in the spreads would trade. there would be 3000 thousand contracts on a bid...be hit by 100 and they would all disappear. Now you have a situation like athe other day when someone sold 5000 9's in z9h10 and there were still 1000 on the bid after...this happens all the time and its great to see.

I have a sneaking suspision that SS is alright for us small locals but as soon as you try to do 250+ contracts you get screwed because the market is run by a select few banks/houses and they all know whats going on. Because of this the market gets massively skewed whenever one of them is putting on a play in a spread. For example m9/u9 going from 6s to pars when the contract was rolled over. its why spreads go too far out of whack.

Any way thats my 2 cents. At the end of the day tho the market is much much better with full ticks...altho there aint much free money

 

[brucemole]

Don't stay out of the wites per se. I normally punt the front box and front fly in small. But as sterlingtrader says you would expect more stabilty further out. You can build a postion in reds and greens with a degree of safety - its harder to run a position offside in the whites as your downside is potentially much greater.

In saying that the last year/18 months has seen much greater volatilty in the back of the curve IMO.


I haven't seen my limits reduced sterlingtrader, touch wood. Have yours been severly cut?

 

[TheBigDog]

Maria Bartiromo/Erin Burnett spread trader...................excellent