Due to a combination of the rate of the futures ten-year German bond, the futures 10-year American bond and the Euro/Dollar parity, the spread we are concerned with is at a record high, as well as having formed a double top pattern.

 This spread with bonds from either side of the ocean, is a three band spread. As bonds are quoted in different currencies, any possible movement against the parity of the two currencies involved must be covered.

 Since we are at historic highs, we should sell this spread with the sound purpose of a return to normal, which would mean a 30,000 to 40,000 Euro profit. To obtain such a benefit implies taking a long term position. But it is also possible to operate for shorter periods whenever the opportunity arises at certain specified times.

 The selling point for this spread is at around the 40,000 Euros difference. And we should wait for a slight recovery in the differential.

The operation should be as follows:

Sell a futures ten-year German bond (Bund)

Buy a futures ten-year American bond (ZN)

Sell around 115,000 Dollars against Euros bought

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