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Bund - Who wants that at 27bp yield for 10y

Bund - Who wants that at 27bp yield for 10y

Euro Bund EUREX:GG1!

27bp a year - Not so great. For this very tiny return, you get certainty to recover 100% of your capital in 10years. In between, your capital may suffer a loss of say 10%.. before the pull to par kicks in. Who wants that? Technically, there is a trendline that more or less should cap the market. The rally from 136 is large in time and price progress and fits with previous reversal stats. Added to the ridiculous yield, you have a short... Even in 100% size that can't really lose more than 2.50% at this level.. and the carry cost is only.. well 27bp a year:)