August 14. A roar or a whisper

–A couple of headlines this morning:
Reuters: Shares regain footing as lira roars out of rout
WSJ: Global stocks rise as lira stages small rally
I’ll go with option number two, a tentative suspension of lira selling took immediate pressure off. But it’s also worth noting that the Argentine peso made a new low yesterday and Brazil is making a push for new lows as well. Also, more analysts are suggesting impending capital controls in Turkey.
–Rates edged higher in the US yesterday with the eurodollar strip mostly down 2 and tens +1.6 to 287.5. Large trades were primarily covered put buys on EDZ20 contract, covering shorts. Open interest in 2EV 9675p fell 25k on a buy of 2.5’s covered 9705.5. 2EZ put open interest declined a total 112k, with a buy of 2EZ 9675p for 6.0 also covered 9705.5. large buy as well in 2EZ 9650p, 2.0 paid vs a futures cover in EDZ9. New shorts were more modest, with buys in 0EX and 0EZ 9700/9687/9675 put flies on a strip, paying 4, (2.0 on each). On the upside, there was a buyer of EDZ8 9750/9762p 1×2 for 0.5. Libor/ois spreads continue to compress, with EDZ8/FFF9 at a new low of 29.5.
–NFIB released small business optimism this morning, at 107.9, staying right near the high and indicating a robust domestic outlook.  China’s investment growth reported at a record low.

Posted on August 14, 2018 at 5:27 am by alexmanzara · Permalink
In: Eurodollar Options

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