Bid/ask spreads for the front contract (Feb ’16/G16) are tighter this morning. Hopefully this will prompt some discussion of (and trading in?!?) in front contracts. Note how seasonal effects are expected to kick in, resulting in some month-month NSA declines in index values.
Since Feb ’16 prices are linked to many May ’16 and Feb ’17 quotes, other contracts are also impacted. Narrowing the Feb ’16 quotes should also narrow the G16/G17 calendar spreads, which should help in YOY projections.
If anyone has a strong view on relative value (i.e. across regions) I’d be open to posting narrow intercity spreads.
Feel free to contact me (firstname.lastname@example.org) if you have any questions or trading ideas.