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#SaxoStrats - Selling bunds on North Korea concern

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January 06, 2016 bond, bond buying, bond investing, bond investment, bond investors, bond market, bond markets, bond portfolio, bond yield, bond yields, bonds, bonds and equties, bonds market, bonds update, bonds v equities, bund, bund market, bund yields, bunds, ecb, ecb action, ecb news, ecb policy, equities, equities trading, equity, equity market, equity markets, equity portfolio, equity strategy, equity trading, european central bank, fixed, fixed income, fixed income bonds, fixed income portfolio, fixed income trading, geopolitical, geopolitics, german bunds, middle east, middle east tensions, north korea, qe, quantitative easing, saxo, saxo bank, saxo tv, saxotv, trading, tradingfloor.com
Claims overnight that a hydrogen bomb has been tested in North Korea, along with on-going tensions in the Middle East, have added to market concern over geopolitical risk. Saxo's Simon Fasdal says it's caught the market off guard as risk-off sentiment returns. Investors have been selling equities and buying core bonds, in particular 10-year German bunds.

But Fasdal explains why he believes there has been an overreaction in the market this new year. In this #Saxostrat, he makes the case for shorting bunds and discusses the relevant levels.