June bonds are top step on Friday... the ES roll is not so defined in a couple of weeks watch the vol as it rolls into June there will a couple of days of mixed vol in both the March and June contracts.
Remember your KY for Monday! Reminder: Reduced Ticks in U.S. Treasuries Begin Monday, March 3 New Event: CME Group Fed Watch Webinar Series Begins Tuesday, March 11 Reduced Ticks in U.S. Treasuries: Monday, March 3 On Monday, March 3, 2008 the minimum tick sizes for 30-Year Treasury Bond futures, and 5-Year Treasury Note futures and 5-Year Treasury Note options will be reduced: 30-Year U.S. Treasury Bond Futures from 1/32nd to 1/2 of 1/32nd (from $31.25 to $15.625) 5-Year U.S. Treasury Note Futures from 1/2 of 1/32nd to 1/4 of 1/32nd (from $15.625 to $7.8125) 5-Year U.S. Treasury Note Options (including Flex Options) from 1/64th to 1/2 of 1/64th from ($15.625 to $7.8125) Questions? Contact the Interest Rate Products and Services team: Jonathan Kronstein 312-930-3472 jonathan.kronstein@cmegroup.com Peter Barker 312-930-8554 peter.barker@cmegroup.com Elizabeth Flores 312.338.2801 elizabeth.flores@cmegroup.com Jeff Kilinski 312-648-3817 jeff.kilinski@cmegroup.com David Reif 312-648-3839 david.reif@cmegroup.com Robin Ross 312.559.4989 robin.ross@cmegroup.com Suzanne Spain 312-338-2651 suzanne.spain@cmegroup.com
short covering anyone? equities are about to tank again and the bond rally resumes with the June Roll? we'll see bonds are up a lot overnight!
Yeah bonds could get a nice pop while equities fall through the floor over the next few weeks. Although I don't see us breaking new highs because of extremely low yields and poor auctions. I also think we are getting close to a bottom in the equities but are just not there yet.
I sold ZBM08 @118 using a farly tight stop this morning. I have to go to the beach by 11, my last week in paradise. good trading! el surdo
Any ideas why this bond move would be sustainable. The move seems completely out of proportion with the down move in equities. The PPI was over 7% y-o-y. Who's buying sub 4% yields and why? I feel like I'm missing some part of the equation.
One possible explanation is that banks are restricting their lending standard; from Bank's prospect that all other asset's valuation is going down except treasuries, hence all based on risk factor.
That would make sense on the short end but with inflation increasing and the dollar plummeting the long end is not really a value play