you mean how low the yields have to be to sell your bond ( or borrow USD from a bank), exchange it into foreign currency and buy a foreign bond? conversely what levels should we look for for foreign investment into the American bond market (currency carry trade)?
how does one find intraday charts of the german bund and jap bonds? e signal ? or the various exchange website? too tired to do a search right now
But I thought that the way it worked was that Hedge Funds borrowed money in Japan (sold bonds?) and bought Bonds in the US. With rates rising in Japan, the dollar weakening, and Bonds prices falling here this trade is getting squeezed.
Try www.futuresource.com intraday 10min delayed futures on all major World wide markets. Just go to Overview page first, use at as a favorite bookmark, lots of good news info. Then click on Charts, and select the symbol, month, and time frame. The Medium density and Large chart graph are good settings to use.
thanks alot for the link .... I have known about them from their ads in futures mag but did not realize they had such an international database ....
Tuesday July 8 trading carved out a high and a low which I will use as a signal to enter a trade. The high was at 115'24 and the low was 114'16 or there abouts in Sept Bond contract. I am using that range as a key to entering my next trade. I'll buy/sell on a breakout of that range. As this day (Thursday july 10) comes into the trading day, the electronic treasury bond contract has already traded to the upper limit of that range. Because of that I have entered the market on the long side ... looking for a move above 116, at least.
you sure you want to go long? my analysis shows we're going down another coupla points from here. We shall see.......... triple
Were they referring to the "Yen carry" or "USD Carry" trade. It works either way but I'm curious to see if they got it right. You basically borrow cheap and reinvest in the interest deferential and then, if you choose, sterilize any currency risk, Regards, Dr. Zhivodka
My decision to go long was not based on any fundamental data or any emotional "desire" to own bonds. I'm looking at the market as a potential trade ... that's it. Admittedly I have taken long positions but I continue to keep tight stops. After getting long very early in the trading day ( before the day session) I have been stopped out. No big deal ... that's what trading is all about. Fortunantly, I have reversed my position where as now I am short 1 bond contract. This latest bond position is in the money by almost a half a point. Targets are still the bottom of tuesdays range, or 114'16.
Yeah, it's tough to try to be long in here. With the current oversold Bond condition and the Jobless Claims at a 20 yr high and the Dow off 125pts and S&P off 15 and the Bonds are still flat on the day?!?! Hell, they should be up 50 ticks. "If you're not long you're wrong" Dr. Zhivodka