how bout' that Bondo sell off from 24 to 8 back up to 24? Pro-style carnage... we'll see how long these steepeners are pushed harder and harder, 2/30 over 300BP!
i made some cash and went home before that rip, it probably would have ruined me,,,, this market blows i think only 5K contracts traded to make it fall from 24 to 8, until the size comes back the risk is very extreme in every trade
Bernard I get churned out sometimes but if you can keep your losses to a minimum on the day when something like that happens you can wait for the excess and jump on it. Buying anything under 10 today and selling anything around 30 was a good trade. Wait for those opportunities. But it is a very dangerous overall environment with no Banks to clog up the book people are scared to put on size or show size.
Probably 99% of the trade is done by bots. They just whip it back and forth. IF the new bond futures exchange ever gets up and running I think they'll have a good chance to make it based on the current CME induced market. And it's being backed by the major players, who are probably helping to weaken the liquidity of the CME market.
Yes, with a lot of iceberg orders ready to arb the cash, maybe... Look at the ZB today: we are 2 hrs after the NFP and you have literally no liquidity on the DOM (until a couple of minutes ago, after the downtrend carnage --practically no uptick on 30Y). The 30Y has become the most illiquid debt contract of the new CMEGroup.
Do you think really those players are attracted to market making oinly a new 5Y or 30Y contract? Aren't they supposedly to be some of the same players using the bots?