US10YY traded below yield support level of 3.58% (my so called show hand level) and EU10YY below 3.44%, re-entering yield double bottom neckline. Thus I have stopped out of all my (short assets) Rates positions tonight. Hard to understand - stocks up + yields down. Could be that lower yields in the driver seat now. Just hope that risk currencies resume their rally as per usual correlations.
26 June 2009
Stopped Out Rates
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2 comments:
Hard to understand indeed, was thinking the same.
The last time equities+rates moved in such close lock-step fashion (single session) was in late Jan. What followed was multi-week range movement for both markets. Not that it should portend the same this time round of course.
Bonds will probably sell off in a big way now that I am out, having traded this Temasek style.
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