Sovereign german bonds and bills questions

L

luisHK

Hi

Not familiar with those, but thinking of buying euros with usd cash I hold with IB and buy 1 year German bonds with those.
Would rather not mess up the value date and pay interest to IB.
If one buys German bonds today, value date will be tomorrow, same as for EUR.USD ?

Thanks in advance !
 
having a look on tws for 1 year out, there´s quite a bit of difference from US Bonds , large spread plus commission is 257euros on 1 million, nasty.
Checked the german 1 month bills and spread is large as well
Any other products better for keeping euros cash ?
 
Last edited:
I give up trading to comprehend the above.

I think you are talking about trading
EURUSD in euro
German bond (eg Bund) in euro
US bond/bill in Euro
 
maxinger said:
I give up trading to comprehend the above.

I think you are talking about trading
EURUSD in euro
German bond (eg Bund) in euro
US bond/bill in Euro
More...

I ve been holding quite a bit of cash in USD with IB for a while now, couldn´t keep euro cash as IB charges on EUR positive balance
Been buying euro while it went down this year, but small amounts, to wire out to my bank current account, where the balance is now about as high as I´m comfortable with.
Thinking of buying more euros, now that it´s below the USD, starting with abt 1 million.
So buy EUR with USD
and Bund with EUR

Been always buying Tbills with USD, (which had a large impact on the forex income, me being based in the eurozone )

All bills and bonds are to be held until expiration
 
ok.

Bund (in euro) and
US T bond / bill (in US$)
[ plus others like Italy BTP (in euro) ]

have quite a good correlation actually.

If you want to be precise, you can plot

[A*Bund - US T bond/bill ] chart

A - a constant which you have to determine
 
I was equally disappointed to see how little /nothing IB offers in the space of sovereign bonds and bills other than the US ones. Even Canadian bills and bonds are NOT offered.

luisHK said:
having a look on tws for 1 year out, there´s quite a bit of difference from US Bonds , large spread plus commission is 257euros on 1 million, nasty.
Checked the german 1 month bills and spread is large as well
Any other products better for keeping euros cash ?
More...
 
luisHK said:
Hi

Not familiar with those, but thinking of buying euros with usd cash I hold with IB and buy 1 year German bonds with those.
Would rather not mess up the value date and pay interest to IB.
If one buys German bonds today, value date will be tomorrow, same as for EUR.USD ?

Thanks in advance !
More...

To answer your question: Bloomberg terminal suggests VD for German sovereign bonds is T + 2 (i.e. settle on 25/08)

Quoted spreads may be wide in TWS as most trading is OTC. IB is not the best route to trade these (or any other fixed income for that matter).
 
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