The $1 Billion Armageddon Trade Placed Against the United States

If I had my way I would lock the plonkers in their 2 Houses without food , water or sanitation until the stupid sods came to an agreement. And just to emphasize the point turn off the air conditioning. Nobody goes in or out until a deal is reached.

I reckon they wouldn't hold out longer than
about ............................

2 hours tops

they are really showing up democracy at its worst - the useless s*ds
 
Stunningly wrong. Another beaut from the halls of ET.

Quote from EON Kid:

This had the hallmarks of one of the largest bond shops in the world knowing something the rest of the market didn't.

Yields are going up sooner rather than later, if the person behind this Armageddon trade is correct.
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Although I'd agree the trade was quite ordinary, I still think bonds will hit the floor sooner rather than later.

The recent rally is simply a knee jerk reaction to the recent decision to raise the debt ceiling - but thats the worst thing the USA could have done IMO. It's just delaying the inevitable. The underlying issues still remain. The decision is a sticking plaster on an axe wound.

The yield on the 10yr is 2.44, vs 14.54 on Greek 10yr.

Given that both countries are bankrupt, and in deep deep debt with little way out, and given the eventual efficiency of markets, armageddon for the USA is not so far away.

If the USA want to do anything, they need to start raising taxes by 1% for everyone in the short term, and in the long term, start manufacturing stuff again....
 
Bernanke is gonna buy any selling. Who you kidding.

Bonds are going higher! Bonds traders don't know any better than to buy bonds on this news.
 
Quote from mksummny:

so how far in the money is this trade going to be now......
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IN THE MONEY for the counterparty.

But since you asked, let's calculate the settlements. (BTW, yesterday was the big anal sex bang for him.)

DumbFuck sold 5370 ZN @ 124-03; today's settlement is 127-015; so, on ZN, he is: ( $ 15,858,281 )

DumbFuck sold 3100 ZB @ 125-01; today's settlement is 132-06; so, on ZB, he is: ( $ 22,184,375 )

So, DumbFuck is marking down $38M and change - and that is much much much better than yesterday's settlement.

Moral of the Story: Volume Means Nothing. You Get Paid On Price. Somebody took the other side of that trade for a reason. In fact, that size is a very common, routine observation. Never trust a market story written by a part-time firefighter who never saw a CBOT Treasury live order book in his life.
 
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