Sept 9. Beige book notes deceleration
Sept 9. Beige book noted economic decleration. Yields were slightly higher as tens were auctioned. RBS a buyer of 17k Grn March 9875c for 8.5. Rather than buy butterflies like he had done at lower strikes in Green Sept and Dec, now just outright calls.
–Pressure remains on EDZ0, driving EDU0/EDZ0 spread to new recent high of 16.25 bps. A break below 9950 should cause sell stops to be triggered. EDZ0/EDZ1 is now the lowest one year calendar spread at 40 bps.
–News today includes Trade, Jobless Claims and 30 yr auction.
–Another local story I caught in the Chicago Tribune: A newscaster sold her west loop condo (walking distance from downtown). Bought in 2005 at $782k, lowered the asking price from $700k to $429k and finally got an offer. 45% cut (if sold near asking price).
