15 February 2011

EU10YY : Nearing Support @ 3.44%

  • Heavily exposed to higher interest rates here (big outright short both TY and long EDM1/Z1, as well moderate +Bunds/-UST).
  • From monthly chart, there should be very good support for 10 yr Bunds around 3.44%.
  • Will buy Bunds 5-10 bp higher from here (currently at 3.31%) to reduce naked Rates exposure. Not too far away now, so limit orders in.

1 comment:

Anonymous said...

not a big fan of the steepeners in eurodollars, fed is on hold for a long time