How the Pros “Run the Stops” Treasury Bond Style

by Mike ‘Mish’ Shedlock
Mish Talk

The volatility on FOMC days can be quite amazing even on days when the Fed does nothing unexpected nor says anything unexpected. Here is a case in point in regards to US Treasury Bonds.

[…] On the 30-Year bond there are 32 ticks in a point and each tick is worth $31.25 as per the following table.

[…] Comments

In five minutes, for no apparent reason (other than to run the stops in both directions), futures swung 28 ticks. On a single future that is a swing of $875.

Anyone with a buy or sell stop in that range, got stopped out (or forced in).

This action is quite typical, and arguably mild.

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