Monday, 4 June 2012

Futures Traders Lighten Up on Curve-Flattening Plays


At least a temporary pause in the curve flattening trend factored into longer-dated Eurodollar futures. Curve a little steeper this morning as stocks rally on speculation that Germany is open to the idea joint European bonds. December 2014 Eurodollar contract recently priced in a rate 22 BP above rate priced into the December 2013 contract. Same spread at 19 BP Friday.

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