swiss rally

[exception]

hi

is anyone able to explain the logic of the rallies in euroswiss stirs over the last week or so? esp. on 5th / 6th May

cheers~!

 

[arabianights]

Well there are super-scary rumours going around about a tax on CHF deposits...

But aside from that, same reason libor going down half a point a day - plenty of francs to go around, people happy to lend em out at silly rates... while getting a wee bit more desperate to get their hands on dollars/euros etc (hence the opposite moves in these).

Finally, it's swiss - everyone's scared because it has moved - I know I am!

Top tip: I'd watch the daily repo operations, see if they change the format of them...

 

[lakai]

where do you think all the people selling euros are buying

 

[tripleogstar]

main thing moving STIRs at the moment is the credit spread, FRA/EONIA spreads, make sure you keep an eye on them, they have certainly been moving Euribor and Sterling futures. As the spread blows out, futures sell off. Obviously with all the greece, spain, portugal etc stuff going on, credit spreads are moving

 

[arabianights]

main thing moving STIRs at the moment is the credit spread, FRA/EONIA spreads, make sure you keep an eye on them, they have certainly been moving Euribor and Sterling futures. As the spread blows out, futures sell off. Obviously with all the greece, spain, portugal etc stuff going on, credit spreads are moving

Well yeah, but it ain't just that with swiss... look at it!

 

[Martinghoul]

main thing moving STIRs at the moment is the credit spread, FRA/EONIA spreads, make sure you keep an eye on them, they have certainly been moving Euribor and Sterling futures. As the spread blows out, futures sell off. Obviously with all the greece, spain, portugal etc stuff going on, credit spreads are moving

And this is exactly the opposite of what's happening in Swissie...

The only thing I'd add to what Cap'n Arab said is that there's all sorts of funding being done through the x-ccy swap mkt, where people are borrowing term USD (and EUR, to a lesser degree) against lending CHF.

 

[Black Swan]

Who won, when did they add Swiss to the circuit, did Loeb pi55 it?

 

[arabianights]

Top tip: I'd watch the daily repo operations, see if they change the format of them...

You read it here first :smart:

 

[exception]

You read it here first :smart:

Thanks for the replies, much appreciated.
i s'pose the snb printing francs to buy euros has affected supply as well, vis a vis surplus of francs. at least a few mean reversion opportunities to be had in sterling (u0) 17/5to 20/5 ,well that's what i've been doing)) have helped the p/l a bit

 

[arabianights]

I've been finding dec 10s andn march 11 the best bit of the curve to trade on bor and sterling, nice 2 way action most of the time, but I prefer a noisy market. Trend followers pretty much everywhere else would like...

Swiss fix today incredible... again...