The Japs are still long 10,000 or so of the June 106 puts in the 30yr and maybe will roll them in the coming weeks. Other than that they have no position in any 5yr or 10yr puts. Riskarb, another size NOB options play today on the close, sold 10,000 Sep 103 puts in the 10yr versus buying 6,000 Sep 103 puts in the 30yr, another steepener. These NOB option steepening plays are getting fairly sizeable, and almost all in the same direction, but the spread has yet to make a move.
Bond rally nearing an end?
- Thread starter gharghur2
- Start date
Makes sense.
Also took an initial long position here, expecting we will rally into sometime around June contract expiry. Planning to pile on if my screen turns green in a convincing manner. If economy starts to weaken it could break to the upside in significant way.
On the downside, medium-term prevailing trend is not in position's favor and I (we) may have just caught the proverbial falling knife? Inflation may get away from us and rates could break higher. But I am going to ask the market (politely) to prove that first.
On the downside, medium-term prevailing trend is not in position's favor and I (we) may have just caught the proverbial falling knife? Inflation may get away from us and rates could break higher. But I am going to ask the market (politely) to prove that first.