April 14.

Bernanke in front of JEC to speak about economic outlook.  There were some rumors early yesterday that he might adopt a less dovish posture, though rates were still lower on the day.  Curve was slightly flatter with ten yr yield down 4 bps and 2’s unchanged.  In seven sessions tens have gone from 4% to 3.81% yesterday.

–Lacker said the Fed will not inflate away federal debt.  Treasury is taking steps to prevent banks suing for unpaid debt by attaching social security benefits (trying to collect phantom money with phantom money).

–Other news includes Retail Sales, expected +1.2% and +0.5% ex-autos.  CPI expected +0.1, both headline and Core.

–The press has generally shifted tone, lauding economic vibrancy in the US.  Too bad small business owners aren’t on the same page; small biz optimism fell to 86.8, and eight month low. (chart attached)

Posted on April 20, 2010 at 5:51 pm by alexmanzara · Permalink
In: Eurodollar Options

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