EU DEBT FUTURES: Schatz the catalyst for sell-off it seems

More colour and analysis around the rapid turnaround in bonds courtesy of market contacts, as we hear that the front end caved first. Dec 2 year contracts breached the pre-October ECB QE tapering low at 112.2400 (low now 112.200), while 5 year Bobls have been underperforming since the off on spreads and some positioning after Coeure hinted at more forward guidance before September 2018 to flag the end of bond buying. There is also talk about 10s vs 30s flattening trades, and block sales of Bunds in 10k lot clips, one at the 162.67 low, but set more than 10 ticks higher, and the other vs an option strategy (162.50/160.50 put spread against 163.50 calls).  Bunds now hovering around 162.66, Gilts just off a new 124.75 Liffe low.

22 Nov 2017 - 10:19- - Source: ransquawk

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