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!
Macro Man therefore buys back his JGB short at 134.71.
Ugly!
3 comments
Click here for commentsmrg! vy early comments today :-)
Replyinteresting to see the mkts' take on that fishy Super SIV... sudden risk reversion ahead of super tuesday for tech stocks?...
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 :) ).
ReplyKG
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.
ReplyFor 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.