Nasty!

It's looking like one of those horrible days where everything goes wrong at once. Certainly Macro Man's getting filled at 108-08 on a TYZ7 short yesterday was ill-starred, and FX carry is getting "carried out" on the proverbial P/L stretcher.

Macro Man therefore buys back his JGB short at 134.71.

Ugly!
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October 16, 2007 at 8:53 AM ×

mrg! vy early comments today :-)
interesting to see the mkts' take on that fishy Super SIV... sudden risk reversion ahead of super tuesday for tech stocks?...

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Anonymous
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October 16, 2007 at 12:01 PM ×

Shorting JGBs will eventually be one of the biggest money making trades of all time (of course, I have been saying that for thirteen years now, and it hasn't happened yet :) ).

KG

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Macro Man
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October 16, 2007 at 12:56 PM ×

KG- exactly. When "it" happens to JGBs, it will be a beautiful trade. But I remember someon e telling me what a great sale JGBs were a dozen years ago...at 3.5% yield.

For now, though, short JGBs is a a negative carry trade that alo does poorly in times of risk aversion, so it doen't make much sense riht now.

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