SaxoTV

#SaxoStrats: Time to close the upside inflation trade

350 views
May 07, 2015 10 year, bond market, bond markets, bonds, bonds market, bund, bund market, bund yields, bunds, euro zone, european, european bonds, european economy, european inflation rates, eurozone, eurozone economy, eurozone growth, eurozone inflation, fasdal, fixed, fixed income, fixed income bonds, fixed income trading, head of fixed income trading, inflation, inflation eurozone, saxo, saxo bank, saxo bank fixed income, saxo bank group, saxo bank saxo tv, saxo bank trading, saxo bank trading floor, saxo bank tradingfloor.com, saxo bank tv, saxo capital markets, saxo traders, saxo trading, saxo tv, saxo tv saxo bank, saxo tv trades, saxo tv trading floor, saxo tv tradingfloor, saxo tv tradingfloor.com, saxobank, saxobank.com, saxostrat, saxostrats, saxot tv, saxotrader, saxotv, simon, simon fasdal, simon fasdal saxo, trade idea, trade ideas, trade view, trader, traders, trades, trading, trading fixed income, trading floor, trading idea, trading platform, trading risks, trading strategy, tradingfloor, tradingfloor saxo bank, tradingfloor saxo tv, tradingfloor.com, tradingfloor.com saxo tv, tradingfloor.com trade ideas, tradingfloorcom, upside

The massive sellout in European bonds offers an opportunity to close the upside inflation trade that Saxo Bank’s Simon Fasdal had his eyes on three weeks ago.

Head of Fixed Income Trading Simon Fasdal spotted an upside inflation trade on April 24, arguing that markets would start paying attention to the price of inflation once there were signs that the European economy was improving.

Recent forecasts for European growth combined with fund managers rebalancing their portfolios as well as market action have now triggered what Fasdal calls an “epic” selloff in German Bunds.

In his strategy for the upside inflation trade, Fasdal had a target of 152 for 10-year Bunds and is therefore looking to close that part of his upside inflation trade.