Short WTI oil binary straddles on crude inventory checks

Jun 10, 2015 08:35 am UTC| Insights & Views

The major event in US for the day is crude oil inventory amid other data events are such as 10y bond auction and budget statement.Inventories of crude oil in the US are decreased by 1.95 million barrels in the week ending...

Bund yield hits above 1%

Jun 10, 2015 08:22 am UTC| Insights & Views

German 10 year bund has finally hit the level and beyond, what many on the market was calling "the magic number" 1% yield. Euro got the necessary boost from rising yields, though long term yield usually doesnt move...

Short Hedging on German treasury bunds

Jun 10, 2015 07:59 am UTC| Insights & Views

Short EUR 6M 10y treasury receivers call, 50 bps Out-of-The-Money options on bonds or equivalently Sell receivers swaption on rates an option seller is naturally short volatility.But in a bear market when prices are...

RBA Governor Stevens provides dovish verbal intervention

Jun 10, 2015 07:52 am UTC| Insights & Views

While Reserve Bank of Australia (RBA) delivered neutral statement on June 2nd, RBA governor Mr. Stevens was far more specific today over monetary policy expectations and Aussie exchange rates. Mr. Stevens cleared the...

Put replication proved more effective means of hedging

Jun 10, 2015 07:21 am UTC| Insights & Views

Well indeed with German bunds, What if the other way round.Lets visualize a scenario where German bunds did not fetch this much yields and curve would have been narrowed. In which case the fund manager who would be...

MSCI says no to Chinese stocks

Jun 10, 2015 07:06 am UTC| Insights & Views

MSCI has declined to include mainland Chinese stocks to its indices. Though recovered, the decision provided a jolt to Chinese benchmark stock index CSI 300, which was down more than 2% after the decision. Though...

Trade laggards can deploy momentum strategies on German treasury bonds

Jun 10, 2015 06:53 am UTC| Insights & Views

The timing of a rise in interest rate has been a double-crossing theme. Yet bond sell-offs arise, badly hurting fixed income and global macro portfolios.What relief can be found in systematic strategies? To what extent...