hi everybody.there is preesure on the dec8

[ud5555]

bor can somebody explein 2 me why?

 

[arabianights]

Was wondering the same thing myself.

Maybe someone knows something?

Suggest a short of sep8-dec8 personally.

 

[arabianights]

see

 

[ud5555]

Surge of bond deals lifts credit risk premiums
By Paul J Davies in London

Published: August 17 2008 18:40 | Last updated: August 17 2008 18:40

Multi-billion dollar debt sales from AIG and Citigroup led a sudden wave of US bond deals last week that lifted corporate credit risk premiums across the market – in contrast to an improving picture in Europe.

However, these market moves mask a rapidly worsening picture for European economies and credit markets versus the US, which some analysts see as a bigger trend that will gather pace.

EDITOR’S CHOICE
Convertible bonds tumble amid forced selling - Jul-16Covered bonds raise banks’ hopes - Jun-29Inflation fears fuel bond rise - Jun-04Convertible bond issuance hits year high - May-20Central bankers help drive bond rally - May-11Analysis: Banks are starting to find buyers for mortgage securities - May-11

 

[ud5555]

i understand that is the reson,can somebody explain pls

 

[gooseman]

i know why.....

 

[gooseman]

it's not just in bor either-it was in sterling. look at friday's moves.

 

[ud5555]

i know that thanks. i understand it something got 2 do with the banks.can somebody explain better?

 

[gooseman]

they're hedging against something OTC.

 

[ud5555]

i know that is the milion dollar question ,but does it stop?

 

[gooseman]

it will do when they have their hedge away.....i don't know what size is going through in the underlying but it's big and the futurtes is thin hence the big moves.

 

[arabianights]

thanks, g

 

[arabianights]

Hedge done yet? Limited volume in bor so far. I took sep-dec overnight aiming to exit somewhere on the other side of zero, maybe helped by ZEW...

 

[arabianights]

This won't help

 

[n3xtras]

Well.... i don't understand!! maybe cause i've to learn it...
First of all i'm talking about eurodollar dec8 ... simply

Today greater ppi than expected... some credit crisis ... last week cpi high
But.... moves up !! i need help in fondamentals...maybe . Anyone ??

Heelp

 

[arabianights]

My interpretation: It went up following treasuries which in turn were a safe haven bid with stocks crashing and US economy looking rubbish. Also some stops went off. And it also went up because it didn't go down.

Suggest ignoring fundamentals if you want to trade short term... Understand them by all means to trade figures but weird things move these markets.

 

[shadowninja]

Is it bad that I have absolutely no idea what you lot are on about?

 

[MrGecko]

the Dec contract has been out of line with U08 and M09 for a while now, this isn't a recent phenomena; look at the Z8U9 spread, it now trading @ -2.5, right out of joint with the rest of the curve.

As for why, it might just be a seasonal effect, compunded by the added uncertainty in these markets. Also remember that the U8 contract has now gone quarter tick, which may well change the dynamics.

 

[gooseman]

the original question was for euribor when it started to get whacked on Friday and ran over into the start of this week. think about what happens in December and then you'll have your answer as to what is causing the pressure.

 

[questroizac]

I am sorry I don't know where to post this, but has anyone heard of the Swiss Helvetia Fund? I found them on the NYSE(NYSE, New York Stock Exchange > Listings > Listings Directory The Swiss Helvetia Fund, Inc.), management fees of 0.778%, amazing!