Mar 9. Baltic Freight Indices reflect weak global trade

Uneventful session in US interest rates.  There was some selling pressure prior to the 3 yr as stocks recovered, but the auction was well received and eurodollars ended with only modest losses.
–Ten year auction today.  Ten year note to tip spread is edging a bit higher, now around 257.
–From a WSJ article yesterday: “Goldman Sachs has accused Saudi Arabia, the world’s most important oil supplier, of misleading the world about its oil production since late last year.
If true, this allegation would mean that the Organization of Petroleum Exporting Countries has far less spare production capacity to make up for the disruption of Libyan supplies than it claims, leaving oil markets in a much more perilous situation than anybody realizes.”
–Silver up another 55 cents this morning.  From the low of late January it’s up about 30%, slightly outpacing the gain in crude oil over the same time frame.
–The Baltic Dry Freight Index has been steadily moving lower, and is now at its lowest since Q3 2009.  The Cape Index (most volatile) was $35044 one year ago and $6548 yesterday. BSI Supramax was 26682 one year ago and 15486 yesterday.  I’m no shipping expert, but that doesn’t seem to be a reflection of robust global trade.
www.dryships.com/pages/report.asp

 

Posted on March 9, 2011 at 5:05 am by alexmanzara · Permalink
In: Eurodollar Options

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