UnSTIRtain Times

Making sense of a tumultuous week.

A week ago, we went long ERZ6 at 97.71 in what we called “a punchy call” on the idea that the short-end had moved too far too quickly in response to the conflict in the Middle East.

We were stopped out at 97.60 swiftly afterwards, with the contract now trading at 97.16. Although we don’t like to engage in hyperbole, it has truly been a historic move not only in the European contract but also in other G10 equivalents.

With us having already gotten over the frustration of such a swift trade exit, the uncertain lay of the land makes clear thinking all the more important as we set out our chessboard from here.