Yikes, what is going on here? ECB about to announce an interest rate hike? Did I miss some news? And I thought it would be boring before the ECB meeting....
Break of a key chart level, not that it was easy to stay short with all the twat black boxes trading counter trend. Hopefully the over exuberant rise in world long term bond yields will put a brake on the economic recovery and we can get back to the everyday doom and gloom that we have grown to know and love!
Congrats for your short, hope you made a nice profit. I did not dare take any position, 20-tick counter moves are not my cup of tea. Yes, I had seen this 121.60 level on the daily chart, but never expected such a reaction. About 100.00 contracts traded in 15-minutes blows up any statistic.
Any idea on what happened during Trichet's press conference to cause this reaction in the 2-10 spread?
I don't know what happened, but I guess some people need some vaseline now.... It is a long time that I have seen such a wild market. The top of the spike on the left is on .38
It makes total sense. The front end should rally as a result of longer tenor tenders. The impact of the covered bond on the long end is unclear, which argues strongly for a steepening.