Bund rundown

The Bunds are currently in a big tug of war, with extremely choppy trading occurring. Bears look like they took the 2% yield level but bull mange to snatch it back during the whole Greek vote palaver. The main things which have affected the bunds today are: the Moody’s downgrades, a good BTP auction, a very very good German ZEW.

The end of last week put a bid into the bund as there were a lot of rumours and sh*t about the Greek vote flying everywhere. Some Greeks didn’t like the terms of the austerity measures, this lead to some of them resigning. As Monday came it appeared that the parliament managed to pass the measures. Despite this the markets did not show any clear-cut response which was expected.

Guru’s thoughts: Bund failed to definitively sell off on good news and again failed to rally on bad news, this combined with very choppy trade leaves me at the conclusion that no-one really knows what the hell to do. With these aggressive burst on minimal volume makes me think that it is simply small investors with low commitment getting stopped out each way. I was very bullish on the Bund last week but now I’m losing faith in the Bund bulls slightly. I still believe that the 2% yield level is something that should be watched closely as a pivot type thing, coinciding with the futures price of around 137.50. An established break below here will put me back in bear mode. However above last week’s high will make the chances of a squeeze to all time highs of 140.23 more likely.


Guru's rant: I don't think it would take the most cunning of people to work out that the c*cks at Moodys gave some of their buddies a nod! Since the US opened yesterday afternoon the Bunds squeezed and the eur/usd got sold. Is it a coincidence?....is it f*ck!
I wish I was in the free money gang!!