How do we know? These wonky moves seen to come at the top of the
hour, a time when US real money accounts are able to deal on a
published rate.
There are fixings virtually every half-hour around the clock
these days, but the bulk of the business gets done at the Tokyo
fixing, the early London fixing at 11:00 GMT, the ECB fixing at
12:15 GMT and the late London fixing at 15:00 GMT.
But as we just saw, quite heavy EUR/AUD flows just went through
at 17:00 GMT.
What we can take away from all this is that money mangers are
getting out of euro-denominated investments in a big way. They were
sellers into strength last week and they are selling into weakness
this week. Looks like Australia is taking a good bit of the
safe-haven flow given recent price action. With rates poised to
head lower in that country, it’s a hot-money paradise for bond
traders…
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Investors fleeing Euro
Posted by douglas51 on 18th of Jun 2012 at 01:54 pm
Investors fleeing the euro in droves
How do we know? These wonky moves seen to come at the top of the hour, a time when US real money accounts are able to deal on a published rate.
There are fixings virtually every half-hour around the clock these days, but the bulk of the business gets done at the Tokyo fixing, the early London fixing at 11:00 GMT, the ECB fixing at 12:15 GMT and the late London fixing at 15:00 GMT.
But as we just saw, quite heavy EUR/AUD flows just went through at 17:00 GMT.
What we can take away from all this is that money mangers are getting out of euro-denominated investments in a big way. They were sellers into strength last week and they are selling into weakness this week. Looks like Australia is taking a good bit of the safe-haven flow given recent price action. With rates poised to head lower in that country, it’s a hot-money paradise for bond traders…