We're all friends here, right? Actually it's quite a nice small group too, all gentlemen and professionals. And no one's out to prove anything which makes it very enjoyable. We just pass along ideas and info, and most of us seem to drift to the same conclusions over time. Everyone has their own particular niche, so its a nice blend of ideas. And Riskarb, is trying to teach us a new language too (just joking). Best thread I've ever encountered. Thanks guys!
Looking at repo rates ahead of the 10yr auction no one is really squeezing anyone else and the real money accounts for the most part are still sitting on the sidelines in the long end, fairly defensive stance. Although this market seems to be forming a bottom in the long end I would still be somewhat wary and cautious. The big money bid may not be there in the end to hold things at these levels for long.
Tony (Gha) I really enjoy this thread myself and hope it continues to be valuable to those that read and contribute to it. It has a positive vibe and everybody seems to be here to help one another. Upticks to all! (that's 4 Greenie's on the daily Pit .....let's get a little follow through) el Surdo
Mcurto, Very true! Technically it looks good for forming a short term bottom, but not a substantial low. Expecting a multi-week counter trend rally to push the 30yr over 110. And, then another extended decline to possibly PAR. That should be a substantial bottom. tony
Decided to join the bond buyer bandwagon here in Sep at 106'10 before the pit-session closed. Nice to be in with the consensus on this thread. Would like to get a handle to the upside before selling some otm calls to complete a synthetic straddle. Good luck guys.
Is it only a synthetic straddle once the long position is in the money (meaning premium received as if a put)?