FxWirePro: Remain short in 10-year bund, buy 2-yr Schatz

This is yet another review of our previous call, given out in October last year to short the 10-year bund at a breakout of 162.5 with an initial target of 160 area and subsequent longer-term target of 153. The article is available here, http://www.econotimes.com/FxWirePro-10-year-bund-heads-for-a-sell-breakout-367667

In a subsequent article, we have reaffirmed our outlook and also shared our forecast that the spread between the 2-year bund and the 10-year bund would widen over time. That review is available here, http://www.econotimes.com/FxWirePro-Keep-riding-the-bund-short-call-review-397028

In several subsequent similar call reviews, we reaffirmed our commitment to the call and added two new targets of 157.4 and 155.2.

Since our call, German 10-year yield has risen by 28 basis points, pushing prices lower and 2-year yield has declined by 14 basis points. So, our spread call is sitting on a healthy profit of 42 basis points.

In the short call (10-year bund), we are currently in negative, however, we remain fully committed to our call given the current circumstance.