The Son of Finance of the Great Age

  Chapter 702 The first hedge fund (eight)

  The defense line heavily stationed on both sides is hard to shake for institutions with small funds. Although the funds piled up on the defense line by the long and short sides are not a lot, everyone knows that behind the obvious, there are still unknown funds preparing at all times.

  Among the two lines of defense, the trading volume and funds began to grow significantly, and soon expanded several times. This seems to be the scouts of the two armies, coming to test before the main force makes a move. But it's also like paying a vote, expressing your attitude before the main players of the two sides fight.

  The yield curve fluctuates up and down, but it will always coincidentally display the huge number of buying and selling hands between the long and short sides in front of everyone, as if reminding everyone at all times that the war between the two sides is about to break out.

   Sure enough, after ten minutes, one side finally moved first, this time it was the main force from multiple sides.

  The purchase order of 1 billion US dollars is directly linked to the 3.82% position. As expected of a large-capacity operation, a direct purchase will digest all the previous sales orders, and at the same time as the signal to clear the market, all other irrelevant people will be cleared out.

   Before everyone could react, another purchase order from the bulls also appeared in the market, and the yield curve suddenly rose to 3.81%, and the two sides fought head-on!

"what?"

  Gross lacked sufficient psychological preparation for this change in the market, and was quite surprised when he saw it. "Skyfield Fund actually took the initiative to attack. Could it be that they are not worried at all?"

   "Maybe it wasn't what they did, maybe they are more confident in the data that will be released, but I can't say for the time being which one it is."

Erian Muhammad looked carefully at the board, his eyes flickered, and he said uncertainly, "According to the previous operations, they seem to be inclined to take a steady and steady approach. Now taking the initiative to attack may be a suspicious strategy on the one hand. Another aspect is to take advantage of the situation.”

  The U.S. Bureau of Labor Statistics will release non-agricultural data on the first Friday of each month, that is, non-agricultural employment, employment rate, unemployment rate and other data. To a certain extent, these three indicators reflect the trend and status of the US domestic economy, and affect the trend of various related indicators including bonds, exchange rates, metals, and interest rates.

   To put it simply, if the number of non-agricultural employment increases significantly, it means that the US economy is improving, which will directly affect the trend of the US dollar in terms of exchange rate, and it is obviously bad news for other currencies. On bonds, money could dump bonds because the economy improves, sending yields higher. In the trading of various metals and even oil, their correlations also showed corresponding upward or downward trends.

   Today is the time for the U.S. Bureau of Labor Statistics to release relevant data.

  “After a strong stimulus, there may be signs of economic recovery, but the tightening brought about by the financial crisis is far from over, and the interest rate hike cycle has not yet seen the possibility of stopping, although Fed officials hinted that there are related signs.”

Gross pondered for a moment, then said slowly, "Under this circumstance, it is inevitable that the non-agricultural employment data will continue to decline. But how much less than expected is unknown. But because there are enough expectations, even if the non-agricultural employment data There has been a considerable reduction in the population, and I believe the impact on the bond market will be limited."

   "It still mainly affects the yields of short-term bonds. As for long-term bonds, the impact is minimal."

Elian Muhammad also agreed, "The five-year bond may be more affected. But for the ten-year bond, the impact is not so great, after all, the long-term interest rate is fundamental. Although The outside world is not too optimistic about the non-agricultural data, but for the Fed, adjusting short-term and medium- and long-term interest rates is the focus and goal of recent operations. I think even if Tianyu Fund wants to take advantage of the situation, I am afraid it will only be today. .After today, I am afraid that long-term interest rates will continue to go high.”

   "So, we agreed?"

  Gross nodded and said yes, and smiled at Elian, "Should we continue to test or avoid it?"

   "Keep attacking!"

Elian Muhammad thought for a while, and decided to choose the former, "If it's the latter, you might have fallen into the trap of Tianyu Fund. Although this is a huge hedge fund, they can invest in bonds After all, the funds in the market are limited. If the previous rumors are not wrong, I believe they have collected at least US$15 billion in 10-year U.S. Treasury bonds. But after all, it is impossible for all the funds of this fund to be invested in this product. 10% of the scale is right For them, it’s probably the limit.”

"what do you mean?"

  Gross eyes lit up, and he said happily, "Are they about to reach the end of their rope?"

"That's not necessarily true!" Elian Muhammad slowly shook his head, "If some assets are mortgaged, part of the funds are borrowed, and some leverage provided by brokers is added, I'm afraid they will lose money in the short term. They can also raise billions of dollars in funding. But no matter how much money they raise, I am afraid they will not last long in this market, after all, they cannot compete with institutions all over the world.”

   "Fight against the whole world?" Gross laughed loudly, "I'm afraid they can't even compete with us now!"

While the two were talking and laughing, the war on the board had reached a fever pitch. The two sides did not increase more funds, but carefully concealed their cards, relying on the funds exposed on the surface to start a **** battle with the other party. Fly hand-to-hand combat.

   Between the two yields of 3.79% and 3.81%, both sides deploy heavy troops, while in the middle area, like a meat grinder, the troops invested by both sides are continuously consumed, and the transaction volume continues to increase. With the rapid growth of matching transactions, the subsequent purchase and sale orders of both parties are also disappearing at a speed visible to the naked eye.

   "1 billion dollars is far from enough, invest another billion dollars to open this gap!"

  In Hong Kong, inside the Tianyu Fund, Jiang Shan stared at the board, his eyes were bloodshot, and commanded the trader in a hoarse voice, "I'll just see the follow-up onlookers, when will they enter the market!"

   Indeed, as expected by Gross and others, Jiangshan skillfully took advantage of the favorable conditions of today’s non-agricultural data disclosure and began to force other market forces to stand in line. In this market, a force far more powerful than Tianyu Fund has never shown up. But now, it's time for them to take a stand.

"problem occurs!"

   "My God, how is this possible?"

The moment Jiangshan lowered his head to drink coffee, there was a sudden exclamation in the trading room, and the traders shouted in succession. The selling order disappeared, which surprised him greatly. Before he could swallow the coffee, it dripped down the corner of his mouth onto his shirt.

   "What, it disappeared?"

  Jiang Shan yelled and asked, "Is the order canceled or was it swallowed?"

   "Swallowed!" A trader replied numbly and quickly, "We hit 3.6% almost without bloodshed."

   "Quickly find out what's going on?" Jiang Shan was even more anxious. At this time, he didn't know who was doing the shooting, and instinctively felt flustered by this sudden situation.

   "It's non-agricultural data!"

"92,000 people, 42,000 people less than the expected 134,000!" Another trader saw the data on the Bloomberg terminal and shouted in shock, "The economic situation is far worse than imagined. !"

  As mentioned above, the economic situation is not good, so that funds will turn to safer markets, such as the bond market, especially the treasury bond market. The influx of funds caused the price of government bonds to rise, which in turn caused the yield to fall. This is a great benefit to Tianyu Fund.

Soon, this news spread throughout the market, and after the mysterious funds appeared just now, the bears showed obvious concessions, and the bulls suddenly became aggressive and kept attacking. Sheng Sheng hit the rate of return to 3.2%.

   "No more concessions!"

  Gross saw the changes in the market, his face was livid, and he waved his hand decisively, "Put all the positions up, and we must hold the 3.2% line of defense."

  At the same time on the east coast, Soros also looked worried. After discussing with Rodney Jones for a while, he decisively invested another 500 million US dollars in the position. Elsewhere in the world, as if realizing that the situation is not good, short sellers began to increase positions and lay down heavy defenses.

  Although they know that the situation cannot be violated, a daily fluctuation of 60 basis points is enough for the bond market to meet expectations, and the rest is adjustment and rebound.

   At the 3.2% yield, the bears once again gathered a wave of heavy soldiers, and this time, there were as much as $10 billion.

   Soon, the bull army led by Tianyu Fund arrived here. This time, the menacing bull army didn't even have time to check the situation, and plunged into the battle formation set up by the opponent.

Jiang Shan, who knew everything about it, complained secretly, but it was too late, he had to bite the bullet and rush in. At this time, he could only gather everyone's strength. If the Tianyu Fund pulled out, the whole situation might be out of control up.

  Even so, Jiang Shan still felt a burst of despair when he entered the short position, because the short side was like a trapped beast, bursting out with the greatest energy, which was much stronger than Jiang Shan and others imagined.

   At the same time, rumors quietly appeared in the market.

   "Tianyu Fund is making a last-ditch effort, they are running out of funds!"

  “The 10-year treasury bond has fluctuated violently, which has seriously deviated from the fundamentals. The SEC has paid close attention to it and may investigate the rumored Tianyu Fund.”

  “In order to deal with the current debt problem, after the new government takes office, it may discuss the issue of the total debt ceiling. According to sources in Washington, this news has been submitted to the new president, and a new economic stimulus plan may be put on the agenda.”

  The originally calm news was immediately flooded with heavy news, forming upward pressure again.

   During this fierce fight, except for the people from Tianyu Fund, others did not realize that the funds that were sold to destroy the short line of defense before did not come from Tianyu Fund.

   Half an hour later.

"We're fucked!"

  Traders of Tianyu Fund typed on the keyboard hastily, and found that the buy order they placed could no longer be filled. After inquiring again, they found that there was no funds in their account.

  In just half an hour, they once again consumed more than 5 billion US dollars of funds, which depleted the cash prepared by the entire Tianyu Fund. On the disk, the short sellers continued to come one after another, and there are still at least 3 billion US dollars of sell orders hanging on the disk.

  As for the buyer, without the strong support of Tianyu Fund, although there is no sign of decline at present, it will soon be possible to see the momentum of the end of the battle from the disk.

   "Brokers, use leverage!"

   At the critical moment, Jiang Shan looked red-eyed, raised his wrist and looked at his watch. There was not much time before the market closed, and decisively ordered the trader, "No matter what, we must hold on to today's results!"

  As long as we can hold on today, Tianyu Fund will have at least two days to breathe, which is especially important. If you can't keep it now, the market will plummet, and all the efforts before that time will be in vain.

  Jiangshan can't take care of so much anymore.

After the trader made the call, the broker who had already prepared the funds agreed immediately, and Tianyu Fund, which received the backup funds, barely stopped the last counterattack of the short sellers, barely fixing the rate of return at 3.18 before the market closed %.

  Although the record is excellent, the top and bottom of Tianyu Fund are not happy, because they know that they have no money!

   Thanks to book friends kalm, God, it’s so difficult to name, stronger933, Jiangnan Liu Feiyan, and dair01 for voting monthly! Thanks to the book friends Crab for reading the book, and Emperor Falcon for the reward!

  (end of this chapter)