Archive for the ‘Eurodollar Options’ Category

Florida man

April 25, 2019 –There’s an amusing viral internet search game: Florida Man on your birthday.  It really doesn’t matter what the day is, a headline is almost certain to pop up with Florida Man engaging in some crazy, drug-(and/or booze)-inspired antics.  As Esquire notes, Florida Man is now a brand.  “He is the frayed fabric […]

Posted on April 25, 2019 at 5:27 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

USD Demand

April 24, 2019 –It’s pretty clear that there’s demand for dollars and USD assets as DXY rallied to a new high for the year, as did stocks (on earnings reports) while yields fell.  Almost all trades going through eurodollars are for possible Fed eases, with all contracts from EDH20 through the golds (5th year) up […]

Posted on April 24, 2019 at 4:58 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Is HOUSING inflation dead?

April 23, 2019 –The latest Bloomberg/Businessweek magazine cover asks ‘Is Inflation Dead?’  Not according to the oil market, which is at new highs today with CLM9 above $66/bbl (+0.53) as Trump ended waivers on sanctions for those who buy Iranian crude.  Iran threatened closing the Strait of Hormuz which creates further uncertainty.  However, gold is […]

Posted on April 23, 2019 at 5:15 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Stocks and oil diverging

April 22, 2019 –Stocks are in retreat after a solid close on Friday, diverging from WTI crude this morning as the latter has surged $1.50/bbl to over 66.50 on news that the administration is tightening sanctions on global purchases of Iranian oil.  Higher gasoline prices are likely to be a cloud over growth in the […]

Posted on April 22, 2019 at 5:07 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Weak Housing, Lower Rates

April 21, 2019 – Weekly On the week, prices didn’t change all that much.  The US ten year yield barely budged, ending Friday at 2.556%, even though the Fed is working hard to communicate a new plan to allow inflation to overshoot in order to catch up with previous shortfalls. While yields have generally been […]

Posted on April 21, 2019 at 6:59 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Stocks running out of gas?

April 18, 2019 – -Once again, little net change in interest rate futures, though the curve had a steeper bias in the wake of a Bloomberg article indicating the Fed is embracing the idea of letting inflation catch up with previous shortfalls.  2/10 notched a slight new recent high at 19 bps, up 1.2 on […]

Posted on April 18, 2019 at 5:09 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Make up

April 17, 2019 –Nasdaq futures at a new high this morning.  China’s Q1 growth better than expected at 6.4% while Germany has cut its forecast for 2019 growth to 0.5 from 1.0%.  It was in late March that a weak German mfg number helped send yields plunging, but TYM is at a new low for […]

Posted on April 17, 2019 at 5:14 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

From the ashes

April 16, 2019 –Little movement in rates yesterday.  Market events were overshadowed by the heart-breaking fire at Notre Dame at this time of resurrection.  –This morning, US stocks are responding to a surge in Chinese shares, with Shanghai Comp bouncing nearly 2.4%.   –Brexit talks continue to drag on.  The original vote was June 23, 2016, […]

Posted on April 16, 2019 at 4:58 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Gold charts…

April 15, 2019 Top chart is June Gold which is tracing out head and shoulders top; target 1226 if the neckline is broken.  It’s at the low of the year, not too surprising given dollar strength and an embrace of risk (again).  What is somewhat odd is the longer term chart below, the gold/silver ratio […]

Posted on April 15, 2019 at 7:44 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Wait and see

April 15, 2019 –Rate futures closed on the lows Friday and have seen no bounce this morning.  Both red and green ED packs settled -7.625.  Tens were up 5.6 bps to 2.558%.  There was sizable buying of TYK 123/124 call spreads on legs for 20 to 21, settled 19 ref 123-03.  Open interest in in […]

Posted on April 15, 2019 at 5:14 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options