[lbo-talk] market rationality

Doug Henwood dhenwood at panix.com
Fri May 4 09:16:58 PDT 2007


[This is from Briefing.com, reporting on bond market movements this morning after a modest and unsuprising jobs report.]

Rumor Mills : The initial fall-off in treasuries on the jobs print has been rumored to have been the result a bad print (188K) seen in foreign exchange land ("London fx types") who had then "sold them til their hands bled," but the actual number quickly reversed things. Take 2: just a straight buy/sell error out of a large fund. Take 3: "the rumor we heard" (coming, in fact, from some London FX types) was that an algorithmic fund, wired up to trade on its own, picks the reports straight off the wires & instantly executes x or y depending on the data. Supposedly it picked-up the revision of 177K instead of the actual. Talk amongst yourselves.



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