Bond Futures turned 2 Sh*t

Discussion in 'Financial Futures' started by PhiliC, Jul 27, 2010.

  1. PhiliC


    Anyone notice the character of the Bond futures have changed dramatically the past few weeks. 1) those machines just bid, bid and bid -- one way street. 2) Used to B much more liquid at B/A -- very hard getting in and out. Once in can't get out. 3) they are pinning the market when the bids get going -- it doesn't come off. Flow at bid/a is choppy, jerky. Jumps all over the place. Wasn't like this in the past.
  2. Are you referring to the 30 yr only?
  3. not last few weeks try last 6 months join our anyone short 30 bond thread these f#cking algo in Zb is nasty ten year stays in a range and ZB goes crazy I was green on the day and have lost it in the post 2 yr auction chop! sux
  4. Participation in everything is down. Mostly due to our idiot policy makers. Uncertainity doesnt make the economy grow
  5. +1

    I got out of the long-bond market soon after they increased the minimum tick size. Now I just stick to the 10-yr. when I want to trade treasuries.

    My advice would be to make the change yourself; ZN has been very liquid to trade and is technical in nature.

  6. PhiliC


    I don't trade the 10 year and I really don't spec much. If I do spec it's in the FV (and not often). So I'm talking about the 30 yr primarily. I don't think its the past 6mos. It seems that it got worse after memorial day.

    When the markets get fast, you can still get in and out , but the rest of the time you just don't know. Then when you are about to get in/or out at the b, it might skip (usually up) one or two ticks for no reason. Then 20 minutes later it'll be back to where the original bid was. Or you get the straight line up 15 ticks with no pull back. Impossible to trade @ the bid. It won't let you.

    After yest's sell off the machines kicked in and it was a one way street the rest of the day. Anyone try trading at the B -- at best a 50/50 proposition. In this game that ain't good enough. today isn't quite as bad. But there is something that don't smell right.
  7. the liquidity in bonds is an illusion.

    there is no depth to an any of the order books.

    if you see a thouand lot trade or a large order its just algo bullshit trading

    with themselves to create the impression someones doing something.

    thats why the price moves bid bid bid bid bid bid bid until it can find a genuine offer.

    its called the cascade effect and price vaccums.

    the exchanges are well aware of it.

    hence on eurex we have volatility interuptions.

    we had 2 last week.

    they just shut the market down and reopen it.