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#SaxoStrats - Buying German bunds on Greek fear

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April 17, 2015 #saxo strats, #saxostrats, bond, bond buying, bond buying programme, bond market, bond markets, bond purchase, bond purchases, bond yield, bond yields, bondbuying, bondmarket, bonds, bonds hedging, bonds market, bonds update, bund, bund future, bund futures, bund market, bund record, bund yields, bunds, equities, equities trading, equity, equity index, equity market, equity markets, equity portfolio, equity strategy, equity trading, eur, euro, euro area, euro zone, europe, european, european economy, european equities, eurozone, eurozone economy, fixed, fixed income, fixed income bonds, fixed income portfolio, fixed income trading, fixed income v equities, fixed spreads, futures, german, german bonds, german bunds, german economy, germaneconomy, germany, greece, greece bailout, greece crisis, greece debt, greece debt crisis, greece european union, greece germany, greece money, greek, greek bailout, greek crisis, greek debt, greek economy, greek election, greek finance minister, greek finances, greek negotiations, greek prime minister, greek talks, greekdebt, green investments, greexit, italy, options, portugal, qe, quantitative easing, quantitativeeasing, quantititive easing, rallies, rally, saxo bank, saxo strats, saxo tv, spain, volatile, volatile market, volatility, yield, yield levels, yields, yields levels
The potential for an escalation in the Greek situation combined with QE is persuading Saxo's Head of Fixed Income to go long on German bunds. Simon Fasdal expects volatility to stay high as the Eurogroup meeting on April 24th draws closer. The zero yield mark is approaching and he says there is potential upside on a confirmed Greek default.

Simon says the trade could work as a hedge to a potential sell-off in European equities if Greek panic continues.

He's looking to buy the Bund Future June at 160.50 with stops at 160.00 and 161.50. He also suggests buying the Bund June Call option at a premium of 0.74.