Martinghoul
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Are you selling bobls, buying bunds? I would disagree, on the margins... Think bobl auction should go well here.
The flattener will be taken off at about 9.55, I agree that the auction will be good but I think the futures will have to recede a bit in the next few mins as I think the tail will be a bit larger than expected. I'm slightly onside in the spread at the mo
US10yr later on too, maybe another opportunity if this doesnt go very well
US10yr later on too, maybe another opportunity if this doesnt go very well
Martinghoul
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I don't know why you say it's a bad auction... I thought it went reasonably OK, as I see no tail and the bond is not coming off after the auction (auction cleared at 2.85%, I see it arnd 2.855% at the moment).
Well I suppose it's not the worst but based on the B:C was below avg (last 10: 1.56, last 3: 1.7) and the retention was at the upper end at 20%. No tail is good I suppose but the price action probably discounted the auction in from last week; I've only been looking at bonds for the past 2 months though so i'm really not an expert.
The 2/5 spread was pretty tasty as an overnight, any thoughts on steepner/flattener for the week?
The 2/5 spread was pretty tasty as an overnight, any thoughts on steepner/flattener for the week?
Martinghoul
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Personally, I think last week's bear flattening was overdone, 'cause it was a very crowded trade. I am strongly in favor of us bull steepening back. I do have a bias and a position, though, so take with a pinch of salt. Have you joined the STIR chatroom, btw?
