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German Bund Futures Volatility Forecast (06/02/2011)

The staff of HyperVolatility suggested you to remain bearish on German Bund Futures and we have been right once again. In fact, the price kept falling over the last days and touched 112.62 the last Friday.

The current volatility is 0.33% (5.2% in annual terms) and the right hand side of the chart seems highlighting a further increase of market fluctuations which could achieve 0.36% – 0.38% (5.7% – 6% annualised) by the end of the week. Consequently, the price should drop to 121.8 – 122 euro in the next trading days, Non-Farm Payroll figures permitting. In fact, a worse than expected reading of the Non-Farm productivity or unemployment could easily help a short-term recovery of the price which, should this be the case, would probably get to 123 euro again.

The staff of HyperVolatility remains highly bearish on German Bund Futures and advises you to keep shorting futures but during the next days great caution is needed.

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