June 30. Just a few thoughts…

June 30. Just a few thoughts…  US treasury yields continue to surge, with ten year yield up 7 bps to 3.11…was just 2.91 a few days ago.  Mediocre seven year auction saw a brief dip, but damage was contained, leading me to conclude that some consolidation should occur here or at slightly lower yields going into the holiday weekend. Treasury vol was hit, with atm TYU straddle moving from 3-03 to 2-56. There was a seller of a few k TYU 121/126 strangles at 107, etc.

–Greek austerity vote passed, but at what price?  And what long term consequence…probably just a delay of inevitable.  Gold jumped over $10 and crude surged back to around 95, having just been around 90 after the strategic reserve release…just shows that short term “relief” can turn on a dime, (or on a dollar in these inflationary times).

–Obama’s press conference highlighted class warfare…corporate jets, fat cats, millionaires….is that good strategy?  Especially in these turbulent times in europe?  Might as well just say ‘why don’t we kill them and take their money and land,’ like when Zimbabwe confiscated farms and went from being the breadbasket of Africa to subsistence and poverty. While I personally agree that a temporary tax increase is ok, it can be framed differently.  Sort of ironic that Goldman just announced plans to lay off 230 people in NYC due to econ conditions.  Successful companies hire people..it can’t just be gov’t, otherwise you wind up like Greece.

Posted on June 30, 2011 at 11:59 am by alexmanzara · Permalink
In: Eurodollar Options

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