Wednesday, December 7, 2011

UK


We have been long the UK term structure from Nov/9, 5-10, then, 108, last 132; 2-10 then168, last 188; 2 - 30 then 270, last 281.   We noted recently we were content to stay with the position, but today’s Ind Prod print, although dated, is worse than we had expected. Plus, the spread is not working as we had hoped given the E-Z situation.

This was a satisfactory experience. Others may want to stay with this position. For purposes of illustration, let us exit the trade and we’ll take another look in a bit.

Robert Craven

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