Archive for the ‘Eurodollar Options’ Category

Dec 11. A few notes

–(Reuters) – Chinese banks extended 1.12 trillion yuan ($169.27 billion) in net new yuan loans in November, well above analysts’ expectations and the previous month. M2 grew 9.1 in Nov, vs expected 8.9.  Outstanding yuan loans at the end of November grew 13.3 percent from a year earlier, faster than an expected 13 percent rise. […]

Posted on December 11, 2017 at 4:42 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Dec 10, 2017. A Nice Place to Visit

Rocky Valentine, a small time 1950’s gangster robbing a pawn shop is shot dead by police.  He awakens to find himself in a lavishly appointed suite where his guide, Mr Pip, is there to cater to his every desire.  Beautiful women surround Rocky as he gambles at the casino in impeccably tailored suits and never […]

Posted on December 11, 2017 at 3:44 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Dec 8. It’s a league game Smokey

–Employment report today with rate expected 4.1 and yoy Average Hourly Earnings +2.7%.  The Atlanta Fed’s wage growth tracker has been between 3.2 and 3.6% all year, last at 3.4. –There was finally a slight steepening of the curve yesterday; likely profit taking from the lows in front of today’s data.  The ten year yield rose 4.4 bps to 237.2.  2/10 rose to 57.  Red/gold euro$ pack spread tacked on a […]

Posted on December 8, 2017 at 5:18 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Dec 7. Diversity of themes

–Long end of market remains relatively firm. Ten year yield fell 2.8 bps to 232.8; 2/10 notched a new low at 52.6. Last Friday’s spike rally associated with the Trump/Flynn news was eclipsed in USH…but no so in TYH or shorter maturities.  On the bond rally there was an opportunistic put buyer: USG7 153p bought […]

Posted on December 7, 2017 at 5:16 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Dec 6. Flatlining

–Once again the curve (should we even call it that anymore?) flattened further on Tuesday.  5/10 treasury spread closed at just 20.6, it was a bit over 40 in early October.  Part of the demand for the long end may be related to (underfunded) pension buying before tax laws change.  But clearly, the flattening trend […]

Posted on December 6, 2017 at 5:24 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Dec 5, 2017. Fangs bite

-Big-cap tech was unimpressed by the Senate’s passage of the tax bill.  As can be seen on the attached chart the NYFANG index closed below November’s range. MSFT -3.8%, AMZN -2.4%, FB -2.1%.  However, interest rates still moved higher as the curve flattened to new lows.  Two and five year notes both rose 3.2 bps […]

Posted on December 5, 2017 at 5:17 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Dec 4. Could faster normalization kickstart VIX?

–Given the Senate passage of the tax bill and ABC’s retraction of a key part of the ‘Flynn testifying against Trump’ story, the market reaction is somewhat muted.  Eurodollar contracts made new lows but have bounced.  In late October, TYH put in a low of 123-27, this morning’s low is 123-30.  Stocks are, of course, […]

Posted on December 4, 2017 at 5:18 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Dec 3. Teflon Don

Donald Trump was born in 1946.  In an ironic twist of history, that was also the year that Teflon products became commercially available.  From the Chemours website, “Upon checking a frozen compressed sample of tetrafluoroethylene, he [Plunkett] and his associates discovered that the sample had polymerized spontaneously into a white, waxy solid to form polytetrafluoroethelyne […]

Posted on December 3, 2017 at 11:18 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Nov 30. Crypto rollercoaster

–Curve steepened slightly from depressed levels as yields rose.  Tens +3.9 bps to 237.4.  Red/gold pack spread +1 bp to 34.5, but still at the low for the past decade.  Wild action in bitcoin which hit a $2000 air pocket taking it from $11k to $9k but it bounced off the low and is now […]

Posted on November 30, 2017 at 5:18 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Run for the Sidelines

–I don’t usually use sports analogies because they’re a bit cliche.  But here’s a guy that saw danger spilling over the sidelines and took spectacularly evasive action, and came out standing.   Let’s hope their are a few ‘wealth managers’ that are as nimble. https://www.secrant.com/georgia-sports/georgia-coach-jumping-and-hovering-in-air-over-sideline-play-is-not-of-earth/73771769/ Georgia Coach Jumping & Hovering In Air Over Sideline Play […]

Posted on November 28, 2017 at 5:36 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options