- Japan and China voicing support for EU bonds. Portuguese bond auction went well. (Temporary?) subsiding of EU funding fears. Spreads to bunds coming in.
- See daily and weekly candles for EU10YY. Current big white candles pointing to higher yields.
- Have today gone with the flow and sold Mar10 Bunds at 124.85. Impact on core book is to reduce naked long TY hedge = increase Bund/UST spread which has narrowed from recent +50 to current +36. Expect further narrowing.
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