Lunch Analysis

Just got back from golfing and it looks like I didn't miss much.  I relabeled everything on the expectation this will break upwards.  It has a bit of a bull flag look to it. The count is atypical but doesn't break any rules and follows the guidelines of alternation between sharp corrections and sideways consolidations.

DX Hourly

And another chart on the bearish Euro fundamentals, from Société Générale.

And again with the margin hikes...Portugal's 10 year bonds were already yielding almost 10% to maturity!


Dear RepoClear Member,

In accordance with the Sovereign Credit Risk Framework and in response to the yield differential of 10 year Portuguese government debt against a AAA benchmark, LCH.Clearnet Ltd has revised the risk parameters for Portuguese government bonds cleared through the RepoClear service.  The additional margin required for positions of Portuguese government bonds will consequently be increased from 35% to 45% for long positions; this amount will be adjusted for the current bond price*.  Short positions will pay a proportionately lower margin. 

1. This decision is based solely on publicly available yield spread data and in no way represents a forward looking market view. LCH.Clearnet will continue to monitor yield spreads closely and keep the parameters under close review in accordance with the Sovereign Credit Risk Framework.
2. The additional margin will be reflected in a margin call on Wednesday 11 May 2011.
3. For further information please contact either Tom Chapman (tom.chapman@lchclearnet.com) +44 (0)20 7426 6338 or Lianne Arnold (lianne.arnold@lchclearnet.com) +44 (0)20 7426 7376