seems like I am talking to myself. Look at Italy and German bonds. Price just continue and continue its movement. Price keep on getting out of the computer screen. those who have entered early should be laughing all the way to the bank. Spreaders are doubling their profit as Italy bond is going south and German bond is going north.
Agreed. My concern would be: for how long is Germany willing to prop up the systemic risk rife within the European Banking system ?
Someone give me an update: has the Bundesbank (or whomever) allowed "foreign" access to the German Sovereign Cash markets yet ? Eurex will always have a limited upside until that happens.
Basis Trading (Trading the spread between cash and futures) provides significant liquidity and OI where the cash markets are accessible - like the US Treasury markets.
Eurex euro btp futures (Italy) still having huge day range. Eurex euro buxl futures (Germany) - seems like getting quieter. Eurex euro BONO futures (Spain) - interestingly not much movement. Perhaps Spain political issue is not bad. Greece bond ? don't know where it is. still trying to find out where are the tradable Greece bond futures.
see how much excitement over those eurex bonds. fantastic movement. time to glue myself to my trading chair for the next 8 hours.
Besides BUND and BUXL are also BOBL and SHATZ available. The value risk per contract is smaller, so it could be a more suitable choice for someone with a smaller account size. All four instruments show a rather high correlation.