Jan 8. Employment report
–Unemployment report today with NFP expected around flat. Rate expected to rise slightly from 10.0.
–The curve continued to steepen with red/gold up over a bp to 267. 2/10 now at 280.5 vs recent high of 284.
–Near contracts are resiliently bid, even though Hoenig made some hawkish comments yesterday. Buyer of 30k EDM 9975 c for 0.75.
–Paper sold 20k TYH 114p 29 to 28…new position. Seller likely feels that if he were to get exercised, 113-18 isn’t such a bad level to be long from… –More treasury supply next week: 3, 10, 30 and tips. The avalanche of issuance doesn’t end.
–Headline from WSJ: Rents Signal Rise of D.C., Fall of N.Y.
–Bad day for Geithner as reports surfaced that the NY Fed, (when he was in charge) told AIG to conceal details of derivative deals. Also, BofA doling out large bonuses.
–Headline on HuffPost: Housing Crisis: No Bottom in Sight
