Euro−Bund future – March 2010

Nicole Elliott from Mizuho Corporate Bank at 12/14/09

Comment: Little to add as prices hold at the same levels for a third consecutive week, slightly higher than September/October’s trading band. We continue to watch for a new interim low to form this month, followed by a rally to a new contract high in thin year-end conditions (especially between the 19th and 3rd).

Strategy: Strategy remains unchanged: attempt longs at 122.65; stop below 121.50. Add to longs on a daily close above 123.75 for 124.00/124.60 and probably 125.00.