Chapter 701 The first hedge fund (7)

   January 2, 2009, the first trading day of the new year.

Since the transaction of more than 6 billion U.S. dollars of treasury bonds broke out in the market, the sentiment of the entire U.S. ten-year treasury bond market has been completely ignited. Rates also began to fluctuate wildly.

  But anyone with a discerning eye can see that the operations on the market are all done by small funds, and the so-called fluctuations in yields are just a flash in the pan. After the real giants intervene, these fluctuations can basically be ignored. What these institutions are doing now is nothing more than drawing chestnuts out of the fire.

  The market is fermenting emotions, and both long and short sides are gearing up and waiting.

  From the last trading day to New Year's Day, all kinds of news were flying in the sky, among which there were as many as several pieces of heavy news that were unfavorable to the bulls.

  Before New Year's Day, the "Wall Street Journal" published a large number of articles, claiming that the U.S. Treasury bond market fluctuated abnormally, and even hinted vaguely that an unusual struggle may have erupted in the 10-year Treasury bond market.

  According to the publication scale and influence of the "Wall Street Journal", this is tantamount to issuing a declaration of war, and the situation suddenly becomes unfavorable for Tianyu Fund.

   In addition, among the traders, there is also news that Tianyu Fund's position is too large and it is difficult to get off. In addition to these unverifiable news, a broker broke the news that a broker with a major customer from Southeast Asia has issued a margin call request to its customers in order to reduce its own risks.

  Of course, there are still doubts about the authenticity of this rumor, but there is no doubt that it has greatly ignited the confidence of the short side.

  Among these miscellaneous news, there are also several official news. One of them is that the Huaxia Ministry of Finance announced at a regular press conference that in the next few months, the Huaxia government will not seek to continue to increase its holdings of US treasury bonds. Although this news has little to do with the 10-year treasury bond market, to a certain extent, it cut off the possibility of Tianyu Fund receiving assistance from the Huaxia government.

  Another news is that a rotating director of the Federal Reserve announced that the current US interest rate has reached an extremely low level, and the possibility of further adjustments is not very great. At the next FOMC meeting, lower interest rates will not be a major topic of discussion. Of course, the director especially emphasized that it is necessary to judge the recovery of the US economy based on the latest economic data before making relevant judgments.

  Of course, the latter prerequisite was selectively ignored by the market. After a wave of hype, many investors heard the news that the Federal Reserve will not cut interest rates at the next FOMC meeting.

This news is particularly important, because it means that so far, in order to avoid entering a liquidity trap, the Federal Reserve has had to pay attention to the decline in long-term interest rates, and its work has also shifted from boosting the economy to preventing inflation, although it is only a preliminary step for the outside world It is speculative, but it is undoubtedly a great influence factor on the bond market.

  The combination of these factors has put serious pressure on the bond bulls. Among them, Tianyu Fund is the most important.

   "Everything is ready!"

  After going to the bathroom to wash his face, Jiang Shan saw Zhong Shi sitting in the trading room, holding his face and staring intently at the market. His face was expressionless, his eyes were burning, and he didn't know what he was thinking.

Jiang Shan thought about it, and decided to comfort Zhong Shi first, "So far, we only have a position of more than 15 billion US dollars. If necessary, we can clear this position within a week. But we may lose some , estimated to be around $2 billion.

   "Close a position?"

  Zhong Shi woke up from his contemplation, and looked at Jiang Shan puzzled, "When did I say such a thing?"

"this is not…"

Jiang Shan rubbed his hands vigorously, with an embarrassed expression on his face. He thought that Zhong Shi's request for help had failed during this period, so now he looked preoccupied. Thought you'd..."

"Where did you think? Ha, I see. You think my allied army is the Huaxia government?" Before he finished speaking, Zhong Shi understood what Jiang Shan wanted to express. He laughed and said heartily, "Little Dude, you think too much. But even if the Chinese government helps me, do you think the US government will sit idly by? Besides, how much can they help us? $50 billion? $100 billion? Don’t think about it, that’s no possible."

"That…"

  Jiang Shan opened his mouth, but didn't know what to say.

"Do things well!" Zhong Shi naturally knew Jiang Shan's little thoughts, stood up, patted him on the shoulder, and said with a smile, "Don't inquire about things that shouldn't be asked, and you will naturally Just know."

"But we don't have much cash reserves right now. When we run out, we'll be... finished!" Jiang Shan was anxious, and blurted out, "If your allies don't make a move, then we may run out of money by next Monday." All the money."

   "Everything will work out this weekend!"

  Zhong Shi stopped and looked straight at Jiangshan for a while, his eyes were so sharp that they penetrated into his heart. It's strange to say that Jiang Shan, who was originally restless, gradually calmed down. After Jiang Shan's mood stabilized, Zhong Shi grinned, stroked his cheeks, squeezed them hard, and then said, "Don't worry, everything is up to me. Watch how things change. You must study hard."

  Jiang Shan nodded vigorously, like a child being taught by his father.

  …

   "Did you do it?"

Inside the Quantum Fund, Soros walked into the office with sweat on his face, took out a hundred-dollar bill, and handed it to the caddy who had been helping him carry his golf bag. Rodney Jones asked.

"not yet!"

Rodney Jones only felt the smell of sweat coming to his nostrils, and took two steps back calmly, before replying, "I think, Pacific Investment Management Corporation is probably also adjusting its positions. After all, the position of 2 billion US dollars If the Tianyu Fund cannot be shaken, the next wave of offensive should be more than this amount."

   "Maybe, but this guy won't give up."

Soros took off his coat and walked towards the inner room of the office, where there was a separate bathroom that was wide enough to take a shower, "Ronnie, you stare at the board first, our goal has been achieved. Let Gross go and Let's fight Zhongshi, we can provoke a war when necessary, but we must not accumulate too many positions."

"I see!"

  Before the door of the room was slammed shut, Rodney Jones hurriedly said, and then he silently exited Soros' office, waved to the traders in the trading room, and said, "Let's get started!"

  With an order, the traders who had been gearing up for a long time immediately started to act, either making phone calls or typing on the keyboard to send out a signal to enter the market.

  The number of sell orders in the market suddenly increased.

  …

   "Has the Quantum Fund acted again?"

Not long after Soros's fund got into action, the news reached the West Coast. Gross and his traders, who had been impatiently waiting, were relieved when they heard the news. Really."

   What he didn't say was true, and others didn't dare ask him what he meant. After two minutes of silence, Gross turned his head to look at them and said coldly, "Let's do it!"

In the past few days, Pacific Investment Management Corporation has borrowed another 5 billion U.S. dollars in ten-year national debt, and another 5 billion U.S. dollars in national debt are under negotiation, that is, as long as this wave of attacks does not work, Pacific Investment Management The management company has more ammo to top it off.

  Although the fluctuations in the yields of government bonds are not very large, in the face of such a large amount of funds, the resulting losses and losses are still not a small number. Now to mobilize the sentiment of the market, what Gross needs to do is to use the power of the market to counter the bulls, especially Tianyu Fund.

   It is Gross's style to despise the opponent strategically and attach importance to the opponent tactically.

  With the Quantum Fund and Pacific Investment Management Corporation’s move, the market that was just a small business immediately became different. First, a row of treasury bond sales orders of 50 million US dollars appeared, which was the vanguard. When this line of numbers appeared in the sell column, small institutions backed down one after another, knowing that the big game had begun.

  A total of 500 million US dollars of sell orders are listed in ten price columns, and the line with the lowest price is the first to be broken through. But when they saw the menacing main short sellers later, these small bulls hurriedly withdrew their buy orders, for fear of accidentally making another deal.

  For the short sellers, their confidence has soared. They have put up sell orders at high positions, lined up their camps and waited for the bulls to attack. For a time, more and more buy orders gathered above the short positions.

500 million US dollars is not much, but it is an obvious signal. Soon, another wave of main short sellers entered the market. It was directly piled up at the position of 3.6% yield, which instantly raised the yield by 20 basis points. After directly reaching 3.8%, the sell order was transferred to the position of 3.85%.

   At the same time, more and more buy orders piled up nearby, and soon broke through the $2 billion mark, once again forming a seemingly impenetrable fortress.

On the buyer side, there were very few buyers, and the yield rose sharply, breaking through to 3.9% very quickly. When it was approaching 4.0%, the market suddenly discovered that there were about 1,500 buy orders piled up at the position of 4.0%. It should be a line of defense for the bulls.

  3.85% to 4.0%, this is the defense line of both long and short sides. Under the heavy display of troops, neither side chose to take the initiative to attack for a while. The market is so deadlocked.

   But everyone knows that this stalemate is only temporary, and this balance will soon be broken!

   Now, just wait for who will make the first move!

   Thanks to book friends dair01 and witty 008 for voting monthly! Thanks for the sneaky tip! It is very strenuous to write now, and I finally wrote a chapter, everyone will read it first, and the author will continue to adjust the state and organize ideas...

  

  

  (end of this chapter)