Bund Bobl spread

Discussion in 'Index Futures' started by Riskadverse, Jul 20, 2005.

  1. hey guys, does anyone out there trade the bund/bobl spread.
    I have just looking at it, but yet to trade it. How is it behaving ?

    Do you use bollinger bands to provide buy/sell indicators, or do you use other indicators. How easy is it to then spread the bobl/schatz to put on the fly and better prices ?

    Do understand if you don't want to disclose your secrets though.

  2. A much easier spread to trade would be a euribor calendar futures spread on LIFFE. You can trade it through interactive brokers. Once you get used to how news effects the yield curve you could then try a schatz/bobl spread. The bund whipsaws so much that I really think it is something for traders to stay away from.
  3. I traded it for a while but found it pointless for my style (trendfollowing) because I can get the same directional exposure trading outrights at lower transaction costs. If you want to scalp it, good luck, there are plenty of autospreaders already out there.
  4. ZF- bang on

    I have seen a lot of people that used to make big on Bund/Bobl get rinsed in the 6 months. Too much maniplation and lack of belief in moves from those weary of Mr Paul Rotter. Nobody talks about flipping anymore- it's now just accepted as part of trading Bund
  5. Cheers guys, it does tempremental to say the least.
    A quick question to qazwsxedc, are you saying that you use the spread to give you an indicator for outight trades. For example if you felt the spread was cheap you would just buy the outright instead of putting the hedge on. I have hought about this and at the monent just in the middle of some research to see if it works.
  6. No. Compare a Bund-Bobl spread chart to a Bobl outright and you'll see why.
  7. If so what cable or sat system do you have?