MI2 Trader: Euribor Next (The Unreliable Girlfriend Trade)

Comment

Back on 14th April, in an MI2 Trader, we recommended shorting the Bund market at around -26bpts with a target of ~+20 by end Q3. At the time, we showed how higher PPI would drag HICP well over 2% and questioned when the hawks on the ECB Council would re-emerge from their slumber. Time has ticked on, and the trade hasn’t made much progress. (-19bpts at the time of writing.) However, fundamentals such as growth continue to move in line with our prognosis.

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