June 28. Dallas Fed Mfg survey adds to a list of weaker than expected econ data

June 28.   Dallas Fed Mfg survey adds to a list of weaker than expected econ data, expected -3.2 actual was -17.5.  The question is whether this slowdown is transitory or not.  ISM is out this Friday, had a large drop last time to 53.5 and is expected lower…dangerously close to 50?

–Yesterday saw a reversal in several markets, notably in stocks, which staged a powerful rally. Treasury yields rose as the 2 year note was auctioned, 5’s today and 7’s tomorrow.  Seller of at least 25k TYQ 126/127 call spread at 13, exit of trade.  Weakness is evident in long end of curve, where 30 year bond yield jumped 11 bps to 4.28%.

–Large buying of EDU 9962c helping push EDU1 up 2 bps to 99.585.  Front end weakness has abated for now.

–News today includes Consumer Confidence expected 62 from 60.8.

Posted on June 28, 2011 at 12:02 pm by alexmanzara · Permalink
In: Eurodollar Options

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