I have become more wary on the bund trade. With Greece in talks with the IMF and Portugal’s CDS widening, there is a risk of more sovereign-default stories and fears of slower growth in the Eurozone owing to IMF loan conditions. In other words, the factors that have pushed bund yields down are still at work — and Portugal isn’t on the front pages yet. I tightened the stop this morning so that I would get out for no loss if bunds ran up, and I have just been stopped out.

Update: I think I was rather wimpish — I could have narrowed the stop to ensure very little loss, while putting it a more sensible technical level.