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German Bund Futures Volatility Forecast (13/02/2011)

The futures on German Bund fluctuated around the 122 euro and the staff of HyperVolatility was right once again since we forecasted a price movement exactly between the 121.8-122 euro.

The volatility is now quite stable, it is moving in a narrow range and specifically between 0.3% – 0.32% (4.7% – 5% in annual terms) meaning that the market could have found, at least in the short term, a stable support.

The reduced volatility should favour a very brief recovery of the price which could potentially get back in the 122.9 zone even if the next week should primarily see a sideways movement of Bund futures.

The staff of HyperVolatility is moderately bullish on German Bund futures, at least for this week, and we will look to place some longs over the next trading days although the target is to profit from small market swings because the main market trend is still highly bearish.

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