Euro BUND & BOBL

Anyone care to share any words of wisdom on these markets?

I've been looking at these markets lately because I seem to be more alive at 2am than 9am.

 

The Bund is the most liquid contract in the world and trades rather cleanly with clean breakouts. The Bobl is a good place to start. Trade these contracts before the US markets open for better trading in my opinion.

 

The Bund will double it's volume - in other words, trade 400 to 500,000 contracts, between 8am and noon CST. I trade U.S. hours, and prefer this contract to the CBOT Tens and Bonds because the liquidity isn't split, and its' cheaper to trade. The tics are cheaper, but on the other hand the range and volatility is much greater than the CBOT interest rate markets.

 

What the heck is the name of the exchange the bund trades on? Electronically. I heard it trades more then the merc and cbot combined! And it hasn't been around that long. Just started up (the exchange) in the 90's. Is that the Dax? I forget.

 

SCHATZ

BOBL

BUND

DAX

CONF

Dj Euro Stoxx


www.eurexchange.com

 

Eurex

 

No. It´s called LIFFE !

www.liffe.com/products/bonds/specs/bund.htm

 

I used to trade alot of Euribor on LIFFE. Alot like the Eurodollar, except it dries up at really inopportune times, and the spread algorithm makes it a detriment for anyone trading flat price.

 

What do you guys use as a leading indicator to daytrade/scalp the eurex bund futures.

a) before the US market opens

b) when US bond pits are open

I am assuming the answer to a) is the yield curve between short and long dated maturities at eurex, and b) would be either the US pit prices or perhaps even equity lead indicators like the PREM or the TICK (bonds follow equities or vice versa?)

Thanks

 

Currently the Bund is simply following the stockmarket, i.e. the markets are negatively correlated. Could be seen today in the morning very clearly. If you want a leading indicator use the Dax Futures (and for them use the SP Futures, I do not do that). Though be careful, the correlation may go astray, if the Bund traders have their own mind of what is going to happen.

In daytrading the Bund, it is absolutely essential to watch the releases of economical news, german as well as american, FED and EZB meetings etc.

For a retail trader I think the best is to stay flat around those times because even if you predict perfectly well what is going to happen, there is a lot of stop fishing going on. It is taking place very fast and very violently, so be careful.

regards

Bernd Kuerbs