30 March 2011

EU10YY : Breaking Resistance @ 3.34%

  • Significant previous high at 3.34% being taken out now. Bunds are now bearish on all of my 3 time frames.
  • This is good for my long UST 10 years/short Bunds spread (but the spread is still at my entry level at +13). Need the US 10 yrs to remain range-bound though. No use for me if it too breaks on upside (yield wise). Guess US10YY has to hold 3.57% for spread to have any hope of paying off.
  • Just grit my teeth and sold some outright Jun11 Bunds at 121.25 (after close).
  • Plenty more comments from ECB officials mostly affirming expectations of rate rise next week.

1 comment:

Taichiseal said...

ECB's Bini Smaghi : "maintaining interest rates where they are now would mean basically becoming more and more expansionary, which is not appropriate."