DE10Y trade ideas
Non-Farm Payrolls from US strongPerhaps the US economy is stronger than previous perception. Even though the financial press is still implying that a US rate cut is going to happen its just to what scale. A strong correlation exists between Bunds and UST so we have seen some retraction in yields on the back of stronger than anticipated employment data. But I still think higher yields are potentially a buy (note guys I don't have skin in the game so its just an opinion). I will spend sometime on looking if a short bases exists in Bunds if so I cannot see a large retraction in yields anytime soon. Unless we see a major event which can break significant levels.
What's this S**T -0.400% Explain Me. New Concept after IphoneXIt would be necessary for someone competent to explain to me bullshit. When I see that shit. I get up from my trading desk. and I was my trading desk. And I go to my bed in a fetal position. Since when do we pay the right to make a credit. Normally it's the opposite. When I lent my money to a close friend he paid me back at 0 because I trust him and that's my friend. It would be the other way around it's me who pays for it to imprint me. I do not think I understood anything about the stock market. I think I'm going to change jobs if it continues. I'm going to sell coal to reduce the greenhouse effect, it's as absurd as that. I'm going to roll over and maybe it'll help.
In 1923 in Germany the mark had devalued 25,000,000,000 times. Maybe it will happen but with the euro.
Bullshit
Want to buy EUR/USD? Keep an eye on this chartThe spread between the German and US 10-year bond yield seems to have carved out a sideways channel this year. As of now, the channel resistance is seen at 244 basis points.
A break higher would imply resumption of the rise from November lows of 280 basis points. Tighter German-US yield differentials would be positive for EUR/USD.
So, I would look to buy EUR/USD after I see a channel breakout on the 10-year German-Euro yield spread.
German Yields at Extreme LowsHere we are tracking the completion? of an ABC sequence. This should attract buying interest in usual circumstances however alarm bells are ringing after the ECB could only go one month with the tap turned off.
Tracking these lows very carefully over the coming days with risk from Brexit, Meuller and Turkey around the corner.
All the best.
chaos is a ladder-whats causing volatility in global marketsmany of you have noticed what appears to be equity volatility in the us and hear the talking heads talk about inversion blah has the fed lost control blah. we're all gonna die, you know the usual. as we've noted in past entries we're feeling the effects of changes in the ECB's stance on going forward due to deflationary data from the eurozone. they've gone from being slightly hawkish to completely dovish ("whatever it takes"). this is due to deflationary data thats been coming out of the euro zone, but the dovishness is a method to reverse that psychological mindset. In a deflationary mindset consumers are more apt to holding onto currency/equivs due to expansion in purchasing power rather assets which loose. this drop in rates is a japanese style response to deflation. meaning with a negative yeild on their rates the incentive to hold cash and equivs is an instant looser, consumers are forced to search for yeild in risk assets. since this shift has been swift and drastic its caused an earth quake that's caused tsunami.
we're on the opposite end feeling the residual effects in the form of $tyvix or the volatility of the 10 year note. it appears that entities are going to the flight to quality trade not out of any real sort of logic but more programatically out of design. from a retail standpoint you should be cheering on these moronic instant loosers. why? because when they figure out theyre loosing money due to cost of carry. they'll switch from a flight to quality to seeking out yeild in risk assets helping risk asset valuations inflate further.why is that? because risk assets contain a positive drift compared to risk free assets because risk assets are based on the risk free rate. so lower yeilds, i say how low can you go? especially knowing central bankers are standing around like panhandlers begging for inflation in any form. is this equity volatility? just a slight spill over, but when things are digested. man. this is where money is made. patience is key