Archive for the ‘Eurodollar Options’ Category

Argentina and the Locomotive

August 18, 2019 – Weekly comment On Friday afternoon I decided to skip my traditional end of week beer downtown and caught the 4;30 commuter train north.  In Evanston, about three miles from my house, the train halted due to a pedestrian fatality on the tracks.  This was between stations, likely not an accident. In […]

Posted on August 18, 2019 at 8:31 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

An interesting August

August 16, 2019 –Yields continued to plunge with tens down 5.2 bps to 1.529%.  Spike lows during the day saw tens reach 1.473% and 30’s 1.914% (ended at 1.98).  The ten year inflation-indexed note yield went negative ending at -3 bps.  New low in several near euro$ calendars, with EDU9/Z9 at -22.5 (-2.5) and EDZ9/H0 […]

Posted on August 16, 2019 at 5:14 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Stocks and yields melt

August 15, 2019 –New historic low in 30 year yield closing at 2.027% and piercing 2% this morning.  2/10 yield spread inverted; I marked at positive half a bp yesterday at futures settle. The gold eurodollar pack (5th year forward) ended within 10 bps of new all time highs.  New recent low in red/gold pack […]

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

A Tweet from Trump Sparks Temporary Reversal

August 14, 2019 — A tweet from Trump suspending September tariffs on additional Chinese goods sparked stocks and caused a pullback in fixed income.  At yesterday’s close SPX was up 1.5% and Nasdaq nearly 2%.  The ten year yield rose, but only 3.4 bps to 1.673%, as the brunt of selling pressure occurred up front.  […]

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

Assassination Tango

August 13, 2019 –Only 97 years and 8 months to go.  In June 2017 Argentina famously auctioned dollar denominated 100-year bonds in size of $2.75 billion.  Last week, they traded 74. and yesterday, 54.  You wanted yield, right?  Attached is a chart of Merval index.  I guess the financial markets aren’t all that wild about […]

Posted on August 13, 2019 at 5:11 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

More insurance cuts for funding issues, or slower growth?

August 12, 2019 –Yields rose a bit Friday with tens up 2.1 to 1.733% and the red euro$ pack -4.5 bps, however, those moves have been more than erased this morning as issues with China appear to be the dominant factor.  The Hong Kong situation appears to be getting worse with HK’s airport cancelling all […]

Posted on August 12, 2019 at 5:26 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Round trip back to 2016

August 11, 2016 Weekly Comment There were many important lows made in 2016 across markets, just before the US election of Donald Trump.  For example, pictured below is the Copper/Gold ratio, which I will return to.  It bottomed in June 2016, which, by the way was just below the 2009 crisis low. (For a better […]

Posted on August 11, 2019 at 8:21 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Effectively, it might be a little tiny bit below zero

August 9, 2018 –Stocks ripped higher yesterday with SPX +1.9%.  As a result, the bid for safety eased in rate futures, with the ten year yield rising  3 bps to 1.712% and red through gold euro$ contracts falling 5 to 3 bps.  The curve was modestly flatter as front euro$ contracts were weakest on the […]

Posted on August 9, 2019 at 5:12 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Rory. He’s not to be underestimated

August 8, 2019 –Amazing market action so far this week.  The thirty year bond neared its all time low yield at 2.10% having traded 2.14 (at futures settlement it was 2.19%).  The ten year note ended the day at 1.682%, down 5. bps on the day.  The two year swap spread went negative by a […]

Posted on August 8, 2019 at 5:14 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

It’s a manipulated world

August 6, 2019 –The stock market carnage continued yesterday evening as the administration labeled China a currency manipulator, however, a stronger yuan setting sparked short covering and stock futures are now up on the day.  Yesterday SPX fell 3% with Nasdaq down 3.5%.  From last Monday’s high to this morning’s low, ESU fell over 250 […]

Posted on August 6, 2019 at 5:16 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options