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Short 10-yr US T-Bond Futures (From 18 May to 25-May)

The trade was stopped out on 25-May as Italian political risk intensified.

Real-Time AmpGFX – sold 10-year US T-bond futures (to Re-establish short)  (Wed 5/23/2018 8:52 AM MT)

Sold half unit at TYM8 at 119-07.5

Comment

I decided to re-establish this short that was stopped out with the risk aversion move earlier today.

I have moved the stop down to be above the equivalent of 3.0%.

Position

Short half unit TYM8 at 110-07+; s/l  119-13+

Real-Time AmpGFX – sold 10-year US T-bond futures (Fri 5/18/2018 10:04 AM MT)

Sold half unit of TYM8 at 118-24

Comment

We closed a short position on Wednesday on Italian political risk.

US yields didn’t respond much to start with, rose to a new high, and maybe down on Friday to some extent on the Italian political news.

Italian bond yields have risen further on Friday (after a pause and modest retracement on Thursday).

There has been little overall contagion from developments in Italy.

The new government there poses a risk, but it may do more to weaken the EUR than cause global bond yields to fall.

US data this week has been strong.  Global data should be improving in Q2, Trade noises between the US and China appear to be improving, oil prices remain high.

I wanted to place the trade on higher yields back on since this is more of a core view.

Position

Short half unit TYM8 at 118-24; s/l  119-07+



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Greg Gibbs,
Founder, Analyst and PM
Amplifying Global FX Capital Pty Ltd