Euro−Bund future – March 2010

Nicole Elliott from Mizuho Corporate Bank at 01/04/10

Comment: Thin year-end markets have seen yields back up and yield curves wriggle in the most extraordinary way; do not be tempted into thinking the medium and long term trends to lower rates have ended. Bund futures have dropped by more than we had allowed for but hopefully the decent weekly Ichimoku ‘cloud’ will stem the latest decline – note that the Lagging Span should also find support.

Strategy: Attempt small longs at 120.95; stop below 120.70. Add to longs on a daily close above 121.50 for 122.65 short term.