"William. In addition to continuing to build short positions in pound sterling, it is also necessary to establish short positions in German long-term Treasury futures. In addition, we also need to establish certain long positions in UK short-term interest rate futures and long positions in long Treasury bonds."

“…”

It is understandable that short selling of the pound is that the UK economy is sluggish and there are certain expectations of depreciation in the pound.

But short German long-term government bonds and long British short-term government bonds.

What a fucking operation.

William couldn't help but frown.

The so-called interest rate futures, as the name suggests, are standardized contracts launched based on interest rate fluctuations.

Because since the oil crisis, interest rate fluctuations in various countries have become increasingly serious, and the government has to use control to curb private commercial lending costs. However, this control is mandatory and is not conducive to commercial development. Therefore, holders of various financial commodities, especially financial institutions, urgently need a tool that is both simple and feasible and effective in managing interest rate risks.

Interest rate futures came into being against this background.

Government bonds are also government bonds, which are the largest high-level financial derivatives in interest rate futures.

Because government bond futures directly reflect changes in market interest rates, but this deposit and loan interest rate is not generated by market transactions, but is stipulated by the central bank, so the central bank's monetary policy is the most important impact on the price of treasury bond futures.

When the two Germanys merged, the East Germans were excited to enjoy more freedom and material richer West Germany, hoping to find employment there and enjoy social welfare. With the long-term integration of the two Germanys, the related expenses have been forcing the German government's budget deficit to increase on a large scale.

When a country's fiscal deficit accumulates too high, it is like a company bears too much debt. It is not a good thing for the country's long-term economic development and is also a long-term negative for the country's currency. In the future, in order to solve the fiscal deficit, it can only rely on reducing government spending or increasing taxes to solve the fiscal deficit.

These two measures have adverse effects on economic or social stability.

If a country's fiscal deficit increases, the country's currency will fall. On the contrary, if the fiscal deficit shrinks, it means that the country's economy is good and the country's currency will rise.

With Germany's current deficit and the high consolidation of marks to the US dollar, as Germany's integration slows down, the German government's investment in infrastructure and various investments will inevitably decrease, and the tax rate will definitely increase.

According to this logic, the probability of a mark going down against the US dollar is much higher than that of an increase.

As one of the leading EU countries, the German Mark has the largest proportion in Ecu. Now the economy of the United Kingdom, Italy, France and Belgium is sluggish and interest rate cuts are needed to release currency reserves to stimulate inflation.

As the old saying goes, people cannot help themselves in the world.

Many times, a country is not a bigger world.

In the EU, even if Germany wants to curb inflation rate hikes, it has to consider the reactions of other countries.

Whether it is a political demand or the economic conditions of EU member states, it is not suitable for hikes.

Germany has no possibility of hikes in interest rates. If it shorts German Treasury bonds, the UK is likely to cut interest rates to stimulate inflation, but it will be long for British Treasury bonds.

Boss, have you been kicked in the head by a donkey?

William thought for a long time but couldn't understand any reason to short German Treasury bonds or long British Treasury bonds.

Treasury bonds are bonds issued by the state, and the benchmark is customized with annualized returns, so the market trend and interest rates of Treasury bond futures are inversely related to the market trend and interest rates.

If interest rates increase, the returns of bank fixed-quota certificates of deposit will increase, and the returns to buy treasury bonds will decrease, and there is no buyer's capital to promote it, and the price will decline. Otherwise, it is also the same.

With the current basic market of the UK and the signal released by the Bank of England not long ago, it is almost a foregone conclusion that lower interest rates are needed. Countries need lower interest rates to stimulate inflation. Deutsche Bank, which has a conversion to the European Central Bank, and the demands of member states are also crucial.

If Germany raises interest rates again, Mark will inevitably continue to strengthen, and liquid capital will continue to flow out of other countries and hold Mark assets, which is very unfavorable for countries except those that Germany believes.

Germany raises interest rates and there is almost no possibility.

"Boss. To be honest, I don't understand why I did this. The Bank of England has no possibility of raising interest rates at all. You may not be clear in the UK. The interest rates for British housing loans are not fixed. Now that the UK's real estate is sluggish, they will definitely cut interest rates."

"William. You probably still don't understand what the core of capitalism is. Believe me, the EU is the core of capital, so it will always be capital first. Also, you probably haven't noticed the actions of the Federal Reserve. I expect that at next week's interest rate meeting, Greenspan will definitely tell the market a clear possibility of hikes, or make a decision to raise interest rates.

Think about it, if you are the president of Deutsche Bank, are you watching Mark's depreciation stimulate inflation again, or choose to raise interest rates to curb inflation.

By the way.

I think you need to understand what is the difference between the core responsibilities of Deutsche Bank and the Federal Reserve."

“…”

What is the difference between Germany and the Federal Reserve?

William was confused. Are they all central banks?

He raised his eyebrows helplessly.

William had a serious sense of crisis. As the company's territory grew bigger and bigger, he found that he could not keep up with the pace of his boss's battle.

"Boss. I think I need to charge, do you have any good suggestions."

"Haha...William, do you know what I like most about you?"

"Chrysanthemum? Boss, if you like, I'm willing to contribute."

"Get out. I like the most if you don't understand it, ask. If you want to understand the rules of the world, I suggest you take a look at the I Ching and Sun Tzu's Art of War."

“…”

Hang up the phone.

William waved his hand and rubbed Hardy Morahn's golden hair. This guy remembered Shen Jiannan's teachings deeply. As a trader, he must control his blood to his head.

After a long time, his heart gradually calmed down.

I picked up the mouse and clicked a few times, and various contracts in the London International Futures Market appeared in front of me.

20-uk-cir,103.15.

sg,99.8.

ggb,105.35.

After taking a few casual glances, William waved away Hardy Moraghan, who was wiping his lips, picked up the phone.

After a moment, the phone was answered.

"Miss. I am William. 20-uk-ci increased the position of more than 30 million. SG in September, I built a position of more than 10 million. 10-ggb, and sold 30 million pounds."

“…”

Chenirvchi Prefecture, Ukraine.

A military green helicopter buzzed and whirled over the state, sitting in the cockpit looking down from a high altitude, the greenness in the eyes made people feel a different kind of relaxation.

But for An Ran and Kardashian, his heart seemed to be pulled and it was difficult to calm down.

At that time, she always thought that she would never see her family again and could only escape incognito all over the world. But who would have thought that after several twists and turns, she could finally return to her hometown.

Every inch of land seemed to have a familiar smell, and every wood seemed to have a breath of home.

"An Ran. Are you nervous? This is not like you."
Chapter completed!