Mar 17. No change in FOMC

The Fed changed little in its FOMC statement, causing a rally in, well, everything.  Ten year yield fell over 5 bps to 3.65%.  Gold soared $20.  Stocks rallied to new highs. It’s all about liquidity.

–New lows in near eurodollar calendar spreads, with EDM0/EDU0 at 15.5 bps.  EDM0/EDM1 matched its previous low at 114.5.  EDZ10/Z11 actually gained 1.5 bps to 144.  The one year spreads have been in tight ranges of 15 to 20 bps for a couple of months. 

–2/10 treausury curve flattened to slight new low of 274.5. Two year yield back at 90 bps.

–Just skimmed a few headlines this morning. The administration says unemployment to remain high through 2010. CA says 25% of residents have no health insurance, citing job losses as one of the reasons.

Posted on March 18, 2010 at 5:32 am by alexmanzara · Permalink
In: Eurodollar Options

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