April 24. Hacked AP newswire tweet

–Rates were nearly unchanged yesterday.  In fact, it has really been pretty much of a sideways market since the last employment report on April 5, when lower than expected payrolls caused a bullish surge in tens to a close at 133-05, vs yesterday’s close of 133-025, and bonds at 148-00 vs 148-03 yesterday.  I guess it’s no wonder that vol has been crushed.
–Stocks closed at the highs, EUR was weaker.  Several news sources are saying the ECB will cut next week.
–The big event of the day was the AP newswire tweet about bombs at the White House, revealed within minutes to be the work of a hacker, but not before stocks took a quick spike down. While the physical violence of the Boston Marathon terrorist attack is visceral, a hacked tweet points up system wide vulnerability that could affect institutional trust and confidence.
–I recall when I was a clerk on the phones at the bond pit, when yes, there were newswires tucked off in the corners of the trading floor, but almost all news traveled by voice over phone and all trades (well, maybe not all) went through the pit.  It seemed fast, back in the late ’80s!  So the desk heard a bearish bond rumor and I immediately picked up Mel’s line and breathlessly relayed the ‘news’ expecting an immediate trade.  He listened, and then proceeded to ask where I had heard it, how long ago, etc, patiently trying to determine source and validity.  Mel knew what he was doing, and I never forgot that.  Might help if the whole market became a bit more circumspect.
–Today’s news includes Durables expected -2.8 from +5.7 and Five Year auction.

Posted on April 24, 2013 at 5:43 am by alexmanzara · Permalink
In: Eurodollar Options

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