Bond futures and order imbalance Examining international linkages

Order imbalance methodology is utilized to examine the linkbetween trading activity and returns in the six most liquid interna-tional bond futures markets. Order imbalances are strongly relatedto contemporaneous returns, in the expected direction (i.e. excessbuy (sell) orders push down (up) yields),...

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Main Author: Smales, Lee
Format: Journal Article
Published: Elsevier BV * North-Holland 2013
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/17478
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author Smales, Lee
author_facet Smales, Lee
author_sort Smales, Lee
building Curtin Institutional Repository
collection Online Access
description Order imbalance methodology is utilized to examine the linkbetween trading activity and returns in the six most liquid interna-tional bond futures markets. Order imbalances are strongly relatedto contemporaneous returns, in the expected direction (i.e. excessbuy (sell) orders push down (up) yields), even after controlling foraggregate market volume. There is evidence of contrarian investorbehaviour following an increase in yields, but continuation of orderimbalances when yields are falling (the prices of bond futures arerising). International bond futures markets are strongly intertwinedwith the US market having a strong influence on the returns andorder-flow across all countries; this is likely an indication of thespill-over effect of US macroeconomic data.
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spelling curtin-20.500.11937-174782017-09-13T15:44:35Z Bond futures and order imbalance Examining international linkages Smales, Lee Order imbalance Spill-over effect VAR Futures markets Bond futures Order imbalance methodology is utilized to examine the linkbetween trading activity and returns in the six most liquid interna-tional bond futures markets. Order imbalances are strongly relatedto contemporaneous returns, in the expected direction (i.e. excessbuy (sell) orders push down (up) yields), even after controlling foraggregate market volume. There is evidence of contrarian investorbehaviour following an increase in yields, but continuation of orderimbalances when yields are falling (the prices of bond futures arerising). International bond futures markets are strongly intertwinedwith the US market having a strong influence on the returns andorder-flow across all countries; this is likely an indication of thespill-over effect of US macroeconomic data. 2013 Journal Article http://hdl.handle.net/20.500.11937/17478 10.1016/j.intfin.2013.05.006 Elsevier BV * North-Holland restricted
spellingShingle Order imbalance
Spill-over effect
VAR
Futures markets
Bond futures
Smales, Lee
Bond futures and order imbalance Examining international linkages
title Bond futures and order imbalance Examining international linkages
title_full Bond futures and order imbalance Examining international linkages
title_fullStr Bond futures and order imbalance Examining international linkages
title_full_unstemmed Bond futures and order imbalance Examining international linkages
title_short Bond futures and order imbalance Examining international linkages
title_sort bond futures and order imbalance examining international linkages
topic Order imbalance
Spill-over effect
VAR
Futures markets
Bond futures
url http://hdl.handle.net/20.500.11937/17478