ECB's Weber Signals Support for More Rate Increases http://www.bloomberg.com/apps/news?...id=alX7ifig31hY Hope, you guys made also some bucks on that "story" Have a nice weekend
Actually heard the same that one of the West Coast money managers (PIMCO or WAMCO, both are huge) was getting out of bunds, not sure if it was to the tune of 200,000 contracts but it was certainly enough to drag Treasuries along for the ride back to pretty much unchanged for the day.
I heard it was the Chinese, no, I mean the Russians. No, i heard it was rate locking, no wait, I meant a vague European hedge fund was unwinding a trade. Just a taste of the pablum that floats around AFTER the market moves. Why do people spend so much time trying to explain what happened and spend so little on what might happen in the future. Rick Santelli's specialty. Regurgitating the crap he hears on the floor of the CBOT where 2% of the treasury volume courses through. "Traders down here are telling me......." Are they? Are they really?
Sorry to piss you off. I was just putting out there what I heard. And by the way, since you know everything about the 2% of the volume that goes through the CBOT floor I guess the fact that the largest banks (Goldman prop) and mortgage houses (Wells Fargo and Countrywide) are the largest customers of the 10yr options pit (and can easily throw around a 150,000 contract options position) has nothing to do with the volume that occurs down there. Again, my fault. If you aren't going to add anything insightful whether it be after the fact or what you think will happen in the future then please don't post. Would rather not hear you complain.
Well, "bullhshit" is the aftermath of a process called digestion. If you want to express your anger there is a more intelligent way to do so. I repeat it again. PIMCO has sold on Friday German Bunds in mass. If you would know Bill Gross´stance on the Treasury Markets for the next half year you would admit it makes sense they are getting a little bit more nervous - especially after Bundsbank´s Weber urged for further rate hikes. My common-sense makes me believe that a central banker is a quite good source to underscore my believing that the rate hike cycle in Europe is not finished yet.
Well whoever has been doing it - its been pretty serious and relentless (depsite the mark-up spikes on news) for what 2 weeks? Particularly heavy this past week. Somebody looked hurt or at least pretty anxious to get out, little bundles of stops being hit all the way down too helping it on its way. I'd say the long side is pretty "vacant", "scared" and/or whatever you want to call it... just imho euromkt.blogspot.com
I think I am going to cover some of my German Bunds shorts here. From here now on we should expect some soft IFO numbers coming in the next month ahead.