The Bund Bobl Schatz Thread

The average daily volume of the BUXL front-month contract over the past 2-3 years, is about 4000 contracts per day. Not immense, but not zero either. Right in the same ballpark as White Sugar #5 (LIFFE), eMini JGB (SGX), and Dollar Index (NYBOT-FINEX).
 
I don't get this. Maybe someone can explain.

Watching the Bobl on Friday I noticed large sizes (2000 plus) on Time and Sales which didn't go through the book, so to speak, ie no change in bid/ask volume on the DOM. Nothing unusual.

However, this started happening with smaller size, eg 300, and with increasing frequency; they didn't show up as last trade size against price on DOM.

One explanation may there were so many trades going through the DOM couldn't keep up. But it also happened during relatively quiet periods (I also saw the same on the Stoxx future).

What's going on? Why not through the book?

Grant.
 
Quote from Grant:

I don't get this. Maybe someone can explain.

Watching the Bobl on Friday I noticed large sizes (2000 plus) on Time and Sales which didn't go through the book, so to speak, ie no change in bid/ask volume on the DOM. Nothing unusual.

However, this started happening with smaller size, eg 300, and with increasing frequency; they didn't show up as last trade size against price on DOM.

One explanation may there were so many trades going through the DOM couldn't keep up. But it also happened during relatively quiet periods (I also saw the same on the Stoxx future).

What's going on? Why not through the book?

Grant.
More...


Grant

Im not for sure exactly what this could be but my best guess is that it is a block trade. I don't know much about block trades other than the cbot is now accepting them for US treasuries.

From what I understand is that block trades do not have to go through the dom and be available for all to see. Instead 2 parties can privately negotiate the terms of the deal and they don't have to report the final transaction right away but I do believe it has to eventually appear on the time and sales.

I don't watch the time and sales, only the DOM but I find what you have said very interesting.
 
I don't mean to take anything away from grant's question but can anybody tell me what countries econ news reports to watch?

I currently don't pay any attention to the econ news that comes out. With eurex treasuries it seems like they don't react hardly at all to any econ news that comes from europe and they only react to the US econ news?

So I guess what im getting at here is should I even pay attention to when the econ news comes out from europe? And if I should which countries should I watch? UK, Switzerland, Germany, etc? Which are the most important?

Thanks Guys
 
YT,

The US is significant but also indicators for Germany and Eurozone.

However, there were French figures released Friday (can't remember what) which caused a bit of excitement.

But given the jittery stae of the markets at present, even bad news for Spain or Italy could have broader ramifications for the EU and Germany.

Personally, I think it's unrealistic for a mere mortal to read the figures on release, make an assessment, then take a postion accordingly. The market would have moved on by then.

All I do is make sure I'm aware of the times of the releases, avoid open positions, and be ready to go with the flow if there is a violent reaction.

Here is a good source (this week's calendar won't be published until very late tonight or very early after midnight):

http://www.todayfx.com/calendar.html?gclid=CMyVhJav3ogCFVBmMAodVlm1jA

Grant.
 
Grant

Thanks for the advice.

Also just to make sure.....eurex is trading tomorrow right? I know the US exchanges are closed due to presidents day but europe is still open tomorrow morning right?

Sorry I should know but thought I would double check.
 
Thoughts about tomorrow.......If we can break below 88 with some conviction on the schatz I think that would set the tone for drastically lower trade all day long tomorrow.

However a break above 94 and we could be trading higher tomorrow.

My bias is lower though. Treasuries look weak right now and I don't see that changing anytime soon.

US stocks also look to get a substantial pop pretty quick. So that should put pressure on all fixed income markets.

Thoughts?
 
Hey ! This is my first post here. I am glad to see a thread for these Eurex markets. Yesterday [Monday] +31 ticks [bund]....Today +59 ticks...[bund].
 
Quote from traderx123:

Hey ! This is my first post here. I am glad to see a thread for these Eurex markets. Yesterday [Monday] +31 ticks [bund]....Today +59 ticks...[bund].
More...

Good to hear from you! So far this thread hasn't got much attention but hopefully that will change.

Congrats on the nice profits! What kind of trading do you do (scalping off orderbook, longer term day trades, etc)? Also are you only trading the bund or do you also trade the bobl and schatz?

Please post away!!!



Broke major support at .77 in schatz around noon today (cst). However judging from how we closed I think we might get a little action to the upside tomorrow morning but it should be limited and im a seller above .75 tomorrow if we trade up there.

Thoughts?
 
scalping? in terms of other markets? impossible to do now a days- there are so many huge players and algorithms- u will never get a price u want- technology has changed- humans are simply to slow to arb with other markets.U can sit at a desk all day and 3/4 times a years " hit a beauty" on size hoping the algos will not sense it first. Depends if u can hack the pure boredom sat at a desk all day staring at reuters/bloomberg etc....

The above approach is fine, but does not generate commisions, something which the broking business relies on for revenue.
 
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