Premium"We Know Where The Pain Trade Lies": Goldman Sees Squeeze In Under-Owned Europe, Russell As Bond Vol Finally Blinks
For two months, every equity question has really been a bond question. This morning, for the first time in a while, the bond market didn't have a new answer (and not just because it was closed).
Writing early on Monday, Goldman's EMEA head of delta-one trading Rich Privorotsky noted that rates are "finally finding their feet after a tumultuous week," with Treasury auctions "relatively well absorbed" and, crucially, longer-dated bond vols having retraced roughly 30% of their recent move. In his latest "GS Basics" note (available to pro subs), he then spelled out what calm in bonds could mean for a market that is positioned for anything but: