Schatz v/s Bund

[imranmir1]

Hi, what might be the difference between trading Euro-Schatz futures and Bund futures? Do these travel in opposite directions, I mean, can we have a scenario that we go long on Schatz and short on bund at the same time? Please advice. Thanks.

 

[MrGecko]

both are +vely correlated; Bund is more volatile than the Schatz, and carries a higher tick size too.

You can trade the EUR 2's 10's spread (Schatz vs Bund) if you think there will be steepening / flattening in the yield curve as opposed to a parallell shift.

Bring up the DOM and watch the PA from Schatz - Bobl - Bund, thats your best bet.

 

[imranmir1]

MrGecko, thanks for the reply. Where would I find the current Bund yeild curves?

 

[Aston1st]

MrGecko, thanks for the reply. Where would I find the current Bund yeild curves?

Bloomberg website has the yield curve on the German