How thin is this fixed income getting!? After these aggressive flatteners and curve play stops bund's looking like the new dax, five or six prices deep all under 100 lots :eek: Not to mention the 358 tic rally in buxl this morning whilst short end pinned to the lows, most nuts open i've ever seen and who did that 150 thousand lot euribor margin stop belong to on Friday's open?
I was about to create a thread about this. WTF. It looks like a holiday market, just China out today? Ever since the roll it's been extremely thin
ive noticed the same thing in FESX. i think it has to do with the "enhanced transaction solution" eurex implemented a month or so ago allowing blackboxes to be even faster leading to less displayed size.
my guess would be that if your box is so fast it can get any trade it wants then there would be no reason to display any size at all which could tip off other traders to your plan.
Because they're adjusting the yield curve after Trichet's comments, the curve is being inverted so yields on short end rise ie. sell the future and vice versa on the long end which is why the buxl (30yr) rallied 300+ tics pulling up the bund as bobl was doing new lows. Because these moves have been so abrupt and trichet's commments were unexpected a lot of large position holders are getting margin calls and stops are being set off, not necessarily computer blip stops, just the need to exit the position. An exotics desk yesterday was responsible for the bund and buxl up moves initially getting out of a position and this exasperates the unwind of steepeners which we saw earlier in the year. The banks need to play the futures against swaps too. Basically there is a lot of pain out there amongst institutional players.
Like I've always said,Eurex don't give a shit about the regular locals,if you've got a black box stuffed up your ass then it's OK with them. The fact the volume is getting so shit has proved my point all along,bullshit market,bullshit calibre of trader.