Archive for the ‘Eurodollar Options’ Category

Hogs

Feb 25, 2021 –I got a call yesterday from a friend (DK) telling me that the Aug/Oct Live Hog spread was blowing out to new historic highs.  I have traded most futures contracts at one time or another, but have never been involved in the meats.  It might be because the meat desk at Refco […]

Posted on February 25, 2021 at 4:56 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Executive Orders

February 24, 2021 –Not much new in Powell testimony to Senate; he appears before the House today for a series of inane political speeches.  Ten year yield eased to 136 yesterday, down 1.2.  5/30 posted a new high of 162 bps.  5yr auction today. –Reuters reports that Biden will sign an executive order today to […]

Posted on February 24, 2021 at 5:44 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

When does stimulus become NEGATIVE for stocks?

February 23, 2021 –Yields at the very front end are underpinned by low libor settings and talk of negative t-bill rates as the gov’t draws down its TGA balance.  The first four eurodollar contracts were unch’d except EDZ1, down 0.5.  The red pack was -0.375.  However greens and blues were both down 3.  New highs […]

Posted on February 23, 2021 at 5:16 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Powell Semi-Annual Testimony

February 21, 2021 Last week I noted some short term targets in curve levels, most of which obtained last week.  2/10 closed out on the high at 123.4 bps, up 14.3 on the week; I targeted 125 to 127.  5/30 closed at 156, I am anticipating resistance at 162.  Red/gold Eurodollar pack spread soared by […]

Posted on February 22, 2021 at 5:24 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Another planet

February 19, 2021 –I watched two very different live-streams of the US government at work yesterday, the Financial Committee hearings on Gamestop and NASA’s successful landing of the Perseverance rover on Mars (with the Ingenuity helicopter).  Could there possibly be a starker contrast?  Everyone at NASA talks about the success of the team and joint […]

Posted on February 19, 2021 at 5:51 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

The mob is having a riot

February 18, 2021 –Yields mixed in spite of robust retail sales data.  30’s fell a couple of bps to 205.4.  Front end had a strong bid with a new all-time low in libor of 0.18138.  2yr note eased 1.4 bps to 10.7. However blues and golds in dollars were down 1-3 bps.  A couple of […]

Posted on February 18, 2021 at 5:09 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Last Straw?

February 17, 2021 –The curve steepened to new highs yesterday with 2/10 at 117.5 and 5/30 at 152.7.  From Friday’s close, red/gold pack spread widened a whopping 13.625 bps to 127.  As mentioned over the weekend, some near term targets are close at hand: 125 to 127 in 2/10 and 160 to 162 in 5/30.  […]

Posted on February 17, 2021 at 5:25 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Levels

February 14, 2021 – Weekly comment “There is a sharp, and artificial decline in rent inflation that is tied to eviction moratoria.  When moratoriums end, shelter inflation will rebound and add roughly 0.9% to core inflation in a short period of time.” -Enduring Intellectual Properties, Feb 13 Inflation Report    Info@EnduringIP.com “Inflation that runs below its […]

Posted on February 14, 2021 at 8:16 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Or fester like a sore, then run

February 12, 2021 –Yesterday the 2-year note dropped to an all-time low yield below 10 bps but ended near 11.  The longer end had modest increases, with tens up 0.6 to 115.8.  Large trade in eurodollars was a new buy of 40k 0EU 9950p for 1.5 mostly covered 9976.5, settled 1.25 vs 9977.0.  These are […]

Posted on February 12, 2021 at 5:20 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

We’re a long way…

February 11, 2021 –Reuters has a headline today which summarizes the environment: “Global stocks nudge higher, sustained by bottomless stimulus.” From yesterday’s comments, Powell is focused on the undercounted unemployment numbers as justification for nonstop accommodation, saying “we’re a long way from a strong job market”. That’s an echo of the infamous “we’re a long […]

Posted on February 11, 2021 at 5:03 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options