Chapter 162 94 London Copper

  The second day after entering March, the U.S. economic data for February came out. This time, for the U.S., inflation is no longer an expectation, but a real possibility.

At this time, Zhongshi’s income in the European bond market has reached as much as 500 million US dollars. In the past week, the yield of the ten-year bond of the German government has increased by 37 basis points, and that of Italy has increased by 58 basis points. And Spain also rose by 62 basis points, which is more than double the increase of a week ago. In the case of Zhongshi's continuous increase in positions, the profit has also increased by a record. In just one week It actually doubled.

"Let's get rid of these positions gradually!" Zhong Shi said, looking at the traders who had lost a lot of weight. They have worked hard during this time. Although they are employees of Tianyu Fund, what they are operating this time is Zhongshi has its own funds, so after the transaction is over, Zhongshi still has to share the previous part of the dividend according to the usual practice.

   "Okay, don't worry, for our dividends, I will also carefully clear the position." The traders agreed, patted their chests, it was about their own dividends, and these people would naturally be very cautious.

U.S. funds have almost withdrawn from the European market, and now is the time to return to value investing. However, what Zhong Shi is not sure about is that the expectation of U.S. inflation still exists in the future, and there may even continue to raise interest rates. He doesn't know what impact the European market has.

In the U.S. long-term bond market, due to Japan’s continuous reduction of U.S. treasury bonds and inflation has become a real threat, the institutions and consortiums holding bonds have suffered, and Bankers Trust in the U.S. even went bankrupt at one point edge, only to be spared by the intervention of the New York Federal Reserve Bank.

  The yield on the 10-year Treasury bond rose by 15 basis points, which means that Zhongshi's 50,000 futures bond contracts made a profit of more than 200 million US dollars, which made traders in the United States very excited.

"From now on, maintain the size of the ten-year US long-term bond position, continue to clear the excess position, and then transfer the funds back to Hong Kong, and start buying Hong Kong bonds." Zhong Shi stretched his waist, somewhat Said in a dejected manner.

   "What? We're about to evacuate?" Louis was stunned for a moment, unable to believe his ears. Under such circumstances, it was time to pursue the victory, so why did Zhong Shi think of evacuating.

   "According to what I said, isn't there still 10,000 empty debt orders left?" Zhong Shi didn't bother to explain to him, and gave the order in a somewhat unreasonable manner.

Seeing that the defense was fruitless, Louis had no choice but to carry out Zhong Shi's order resentfully, and closed the long position in the market, which caused the yield of the 10-year treasury bond to drop slightly, but in the end, Tianyu Fund still succeeded with a profit of 200 million US dollars leave.

In just one month, the net value of Tianyu Global Macro and Commodity Fund reached 1.27. This income shocked everyone who stayed in Hong Kong. Only then did they realize that the manager in charge of these two funds has a keen sense of the market. Those who can make huge profits, these originally proud traders finally put away their little thoughts and invested their own funds into these two funds.

  In the end, Lewis left the United States with 700 million U.S. dollars. The money will be invested in the bond market in Southeast Asia, and the remaining 500 million U.S. dollars will be kept by Zhong Shi himself. He will invest this money in the London copper market.

  …

   "Are you here?" Zhong Shi nodded to Zhong Yi outside the door, then subconsciously looked behind him, only to find a figure that surprised him, it was Miss Zhou Yufang from HSBC.

  Seeing Zhong Shi looking at him, Zhong Yi scratched his head in embarrassment, and said falteringly, "That...that..."

Seeing that Zhong Yi hadn't spoken for a long time, Zhou Yufang couldn't help twisting his arm a little angrily, and then said generously: "I heard that Zhong Yi found a job in the United States, so I came to see it during the working holiday. Look."

   Zhong Shi nodded and let the two into his apartment. Zhong Yi is also approaching 30 years old now, and Fu Hongzhuang has often asked about Zhong Yi's love life in oblique ways in recent years, and now that she can settle down, it can be regarded as a concern of the old man.

Zhong Yi has already passed his Ph.D. defense, and joined the World Bank in Washington in March. He is in charge of Asian economic analysis. However, he is only a junior economist in the World Bank where elites gather. Firstly, his qualifications are too shallow. In the past few years, the Second World Bank has been actively expanding its affairs in Asia, so it has recruited many Asians in American universities.

   "Look at this." After entering the room, Zhong Yi's face returned to normal, and after a few pleasantries, he handed a thin piece of paper to Zhong Shi.

  Zhong Shi took the paper, glanced at it, and found that the content on the paper was all related to Southeast Asia. Words from Thailand, Indonesia and other countries appeared frequently. He was surprised, and then he read it seriously.

   This is a report on the flow of funds from Europe and the United States. The report claims that due to too much uncertainty in the European and US bond markets, these funds have begun to flow into East Asia. The conclusion of the final report is that this will further stimulate economic growth in Southeast Asia.

   "What do you think?" Zhong Yi couldn't help feeling a little anxious after seeing Zhong Shi put down the report and pondered for a while. He came this time just to get some opinions from Zhong Shi.

   "This report is all facts, I have nothing to say." Zhong Shi said lightly. At this time, in his heart, there is a stormy sea. It turns out that the root of the Southeast Asian financial crisis is here. These capitals really have ulterior motives, and they have been lurking for three years before finally taking action.

   Seeing that Zhong Shi had no objections, Zhong Yi sighed, and then chatted with Zhong Shi for a few more words before bidding farewell to Zhou Yufang and leaving. It was rare for him to take a few days off this time, so he naturally wanted to live a two-person world with her.

  But as soon as Zhong Yi walked downstairs, the mobile phone in his hand rang. He smiled at Zhou Yufang apologetically, then walked two steps quickly, and answered the phone in a remote place: "Hello, who are you?"

   "It's me!" Zhong Shi's deep voice sounded, "About that Miss Zhou, what are your plans?"

   "Of course I'm married!" Zhong Yi said with some displeasure. Foreigners have always kept their privacy very secret. Zhong Yijiu was naturally deeply influenced by Hong Kong and the United States, so even if his cousin asked him, he was very upset.

   "If you want to register your marriage, it's best to register in the United States." Zhong Shi on the other end of the phone obviously heard his dissatisfaction, and suddenly said this sentence after a moment of silence.

   "Uh...you continue!" Zhong Yi asked strangely. In his opinion, is it not the same thing to register in Hong Kong and to register in the United States? Why did Zhong Shi say this, but he also knew that his cousin was definitely not aimless, so he waited for his next words.

   "Don't you know that American law does not have the clause of equal property sharing between husband and wife?" Zhong Shi asked back.

   "..." Zhong Yi was furious, and then said viciously, "Go to hell, you dare to curse me for divorce in the future!" and hung up the phone.

Zhong Shi on the phone side heard the beeping sound from the microphone, and couldn't help but lamented: "People in love are fools!" I have also experienced by his side for a long time, and I believe that I will take care of this matter before I get married.

  …

The decision to enter the London copper market was made by Zhongshi long ago. Although the bond market in the United States is still in a mess, and even the climax has not yet been reached, Zhongshi has already sensed the risks in this market. First, the exchange added short positions Then the SEC announced a severe investigation into market speculation, and even suggested that some seats were manipulating the market. In this case, Zhong Shi could only slip away.

   After all, this is a wrestling between two countries, and if you are a little careless, you will be smashed to pieces. Because of the recent changes in the bond market, the New York Stock Exchange even closed the exchange on March 2 to deal with the current situation.

  10,000 lots of bond index contracts were allocated to the accounts of several offshore companies, just on the verge of the position limit of speculative accounts, which left the SEC speechless.

London is the largest market for copper futures, and the copper 3 contract with the largest trading volume is the so-called copper 3 contract, which refers to a three-month copper contract. Each of these contracts has a period of 3 months. There are new openings and deliveries in the market, and there is no spot market.

  For example, a contract that bought a lot of copper 3 in the market on March 1, if it has been held for a long time and has not been liquidated until the end of May, then he will deliver on June 1. If he had opened a position to buy on March 2, then the deadline for delivery would be on June 2.

This is determined by the demand in the copper market. It is precisely because of the contract design that is somewhat different from that in the United States that the LME in London can make the metal market so large. More importantly, the LME does not have a daily settlement system, which gives Institutions with a large amount of capital have the possibility of manipulating the market.

In copper futures 3, in addition to the on-site market, there is also the electronic market and telephone time. Among them, the telephone market has the largest trading volume. What Zhong Shi wants to do this time is copper futures in the telephone market. This is a 24-hour market, which is enough for him Can control the overall situation in the United States.

  The target of the futures is electrode A copper, and each contract is 25 tons of copper cathode, quoted in US dollars. At present, the price of copper futures is about US$1,870 per ton, and the target amount of the first-hand contract is about US$50,000. The original margin given by LME is 15%, and the maintenance margin is 10%, which means that each contract needs US$6,500 or less .

   "Hi, hello, is this Mr. Brian?" Zhong Shi called his agent. It was already two o'clock in the afternoon in Chicago time, which was seven o'clock in the afternoon in London.

   "You are Mr. Zhong!" The microphone came with an authentic London accent, "Do you want to open a position in the copper futures market?"

  (end of this chapter)