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#SaxoStrats - Selling bunds on North Korea concern

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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.