Dec 3. Bernanke reappointment hearing

Dec 3.  Yields rose modestly yesterday, with ten year yield up 5 to 3.27%.  Today treasury announces size of next week’s 3,10, 30 year auctions.  Though supply weighs on the market, it’s worth noting that Japan 10-year rate is 200 bps below the US at 1.27% (and edging lower), though its fiscal position is worse.
–Credit card delinquencies in October were 4.41% according to Fitch, just slightly below the record in June of 4.45%.  Fortunately they can make it up with 30% financing rates, even as consumer credit declines.
–Bernanke speaks today at his re-appointment hearing.  Other news includes Jobless Claims, expected 485k and non-mfg ISM expected 52.0.
–Gold made another new high, and is starting to look similar to the historic 1999 parabolic run in Nasdaq. 
–Some talk circulated yesterday that the Fed may begin to tighten as early as July 2010.  While I doubt that, it does seem to me that the market may be on the verge of a big flattener, once next week’s supply is out of the way.  I am inclined to buy put structures in red midcurves delta hedged with gold eurodollars.

Posted on December 3, 2009 at 6:37 am by alexmanzara · Permalink
In: Eurodollar Options

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