tag:blogger.com,1999:blog-5872704942379618557.post8576188879324114918..comments2023-08-11T16:47:19.884+08:00Comments on Taichiseal Charts: 3-mth EuroDollar Calendar Spread : +Jun11 vs -Dec11Taichisealhttp://www.blogger.com/profile/16408626185813147200noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5872704942379618557.post-83405538049433327782011-03-18T21:39:34.121+08:002011-03-18T21:39:34.121+08:00you got the point, swappers like carry trade, we k...you got the point, swappers like carry trade, we know that fed is on hold and there is a ton of cash is the market, thats why they all sold puts and long the contract, even though you can make 6 bps in 3 months... thats part of the reason why we sold off from 99.64 to 99.59.<br />that s why i dont like being long this contract. If you want a good short you will have to go further out the curve. or selling edz1 outright which has also a limited upsideAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5872704942379618557.post-73086220698713475452011-03-18T20:38:52.884+08:002011-03-18T20:38:52.884+08:00Can you please explain to me why you say the whole...Can you please explain to me why you say the whole market is long EDM1?<br /><br />At +7bp carry to 3mth cash libor (which has been stuck at 0.31% for the longest time so this is as good as the absolute upside limit for EDM1), traders would have to be really really desperate or idiotic to buy this and hope to earn the 7 bp over 3 months.Taichisealhttps://www.blogger.com/profile/16408626185813147200noreply@blogger.comtag:blogger.com,1999:blog-5872704942379618557.post-20955764065818932372011-03-18T20:26:28.277+08:002011-03-18T20:26:28.277+08:00Yes. Well aware of that.Yes. Well aware of that.Taichisealhttps://www.blogger.com/profile/16408626185813147200noreply@blogger.comtag:blogger.com,1999:blog-5872704942379618557.post-62826289599291161072011-03-18T20:23:17.012+08:002011-03-18T20:23:17.012+08:00this spread is basically driven at 90% by the edz1...this spread is basically driven at 90% by the edz1. you are long edm1 which has a limited upside, but can easily dropped on libor concern or people unwinding and the whole mkt place is long this contract.Anonymousnoreply@blogger.com