April 27. 2 yr auction and Goldman subprime testimony today

April 27.  Quiet Monday in interest rate futures.  UBS a buyer of about 10k of both TYM 115p (13 and 14) and TYM 115.5p (18). 
–Financials were weak in front of today’s Goldman inquisition and government plans to sell its position in Citi. Citi -5.1% on volume of 1.24B shares (over 20% of all NYSE volume).  JPM -2.3%, BAC -2.0%, GS -3.4% and MS -3.1%.  
–Two year auction today.  Curve slightly flatter.  Red/green pack spread made a new low at 115, down 1 bp on the day.
–Homeownership rate falling…67.1% in Q1 2010.  Peak was 69.2% in 2004.  From Florida Realtors website: WASHINGTON – April 26, 2010 – Struggling borrowers who give up their homes through a “deed in lieu of foreclosure” or a short sale will be able to obtain a new Fannie Mae loan in two years. Currently, these owners must wait at least four years… New policy designed to make alternatives to foreclosure more attractive.
–(HoffPost)Brazil’s Health Minister Jose Temporao says adults should be exercising more to help keep their blood pressure down – and he says a good cardiovascular workout includes sex, “always with protection, obviously.” Temporao also recommends dancing, a healthy diet and regular blood-pressure checks. NY and other places in the US want to legislate against salt in food. No wonder Brazil’s kicking our ass.

Posted on April 27, 2010 at 5:18 am by alexmanzara · Permalink
In: Eurodollar Options

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