Aug

8

It is interesting to see that before the 10 year auction results are announced at 1300 EDT, there is hardly any volume whatsoever on the bid or asked in 30 year bonds. I saw bids of a total of 30 bonds and offers of a total of30 bonds before the results announced 3 ticks on either side. Normally the bonds trade 350000 futures contracts a day and there are bids and offers of 1000 each within the 3 point range. What this means is that the market at least for fixed income is almost entirely professional. There are no amateurs who leave their bids and offers in to be taken when the market makes a move of an average of 16 ticks on the auction. Hats off.


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2 Comments so far

  1. Joel Kruger on August 8, 2012 3:55 pm

    Hi All,

    Big fan of the site. I recently left life as a currency strategist and am a full time trader now. I also launched a blog at JKonFX.com. Please feel free to check it out. I put out a daily piece at http://www.jkonfx.com/fx-daily-briefing/

    Keep up the good work!

    All my best,

    Joel

  2. Bastiaan Agtereek on August 14, 2012 6:08 am

    I am an amateur in the markets, with sometimes a view or opinion where professionals say well that’s not bad at all. QUestion. I heard on CNBC (have no data myself on this) that fixed income markets are 50% hedgefunds and probably nearly 50% mutualfunds and some (included)retirementfunds.

    Gives me the thought at what point you are looking at this particular market and with what kind of hat (excuse me English is not my native language). Like Mr.D.Kass says on a site often to retailinvestors/traders that the bondmarkets at some point will selloff. Who will take the offers when the market sells off? Nobody will bid/crash. Just because one must assume the markets are entirely professional.

    In retrospect one can take it for granted that the markets will gradually selloff; or a natural disaster or WW3 breaks out.

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