Abstract
The role of squeezing in quantum key distribution with continuous variables based on homodyne detection and post-selection is investigated for several specific eavesdropping strategies. It is shown that amplitude squeezing creates strong correlations between the signals of the legitimate receiver and a potential eavesdropper. Post-selection of the received pulses can therefore be used to reduce the eavesdropper's knowledge of the raw key, which increases the secret key rate by orders of magnitude over large distances even for modest amounts of squeezing.
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