T-Bond trading comment (November 26, 2007)

I have nothing to say except that we are in panick mode. The market in my opnion is a bit ahead of himself... But hey who am I to decide when the T-bond is high enough...

The whole day was bid, bid, bid... Our daily elasticity gave us the go ahead to short the market at the settlement... Now we need to see a 118-9 print to be happy. Our short call are getting whamed... Granted we still have protection room but the MTM is not friendly right now ( vega and prices higher)

I don't want to appear too bearish on the future direction of the T-bond, but today's run-up was mainly done while the stocks where only midly down (got killed after the settle although) and swap spreads were also loosing ground... Weird...