June/9 we sensed relative interest rate pressure, US side vs Germany. Thus, we recommended selling (S) the US 10 yr at 2.99% and buying (L) the Ger Bund at 3.03%. Last, 3.11% vs 2.93%.
Thus, the price of the 10 yr is now considerably lower; the price of the Bund, considerably higher. Trading desks usually exercise such a strategy with futures; it can be done with cash. Either way, the return for the 4 wk trade is very satisfactory.
We would recommend that clients take in half and let the balance remain until further notice.
Robert Craven
Thus, the price of the 10 yr is now considerably lower; the price of the Bund, considerably higher. Trading desks usually exercise such a strategy with futures; it can be done with cash. Either way, the return for the 4 wk trade is very satisfactory.
We would recommend that clients take in half and let the balance remain until further notice.
Robert Craven
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