Archive for the ‘Eurodollar Options’ Category
(not) Out of Reach
April 22, 2021 –New all-time low 3 month libor at 0.17288. EDM1 settled 9981.5 or 18.5. The rest of the eurodollar curve was modestly lower, down 0.5 to -1.5. Treasuries also nearly unchanged. –While lumber pulled back from stratospheric heights on Tuesday, other commodities had upside runs yesterday. For example, June Palladium made a new […]
Paring back shorts in interest rate futures
April 21, 2021 –SPX was down 0.7% yesterday, continuing a modest pullback from last week’s all-time-high. SPAK, the Defiance SPAC etf, was down 2.5% yesterday, and is off more than 30% from the high set in February. The Defiance website says it is “Democratizing and Disrupting the IPO market” but it is now near the […]
It’s 420. Chill
April 20, 2021 –New lows in near one-year eurodollar calendars as reds and the first two greens outperformed. A couple of examples: EDU21/EDU22 fell 1 bp to 12, having been as high as 22 in the beginning of April. EDH22/EDH23 settled 28 down 1.5, with an early April high of 42. While EDH23 and EDM23 […]
Inflation
April 19, 2021 –On Friday, I pasted out a clip from Cass Transportation, just a couple of lines including this one: “For truckload linehaul rates, shippers paid an average of 10.1% higher than a year ago, causing that index to also reach a new all-time high.” I don’t usually get a lot of response but […]
MADoff Market
April 18, 2021 – Weekly comment____________________________________ This week I start with the standard Federal Reserve disclaimer: …before I begin my commentary, I am obliged to remind you that the views I express are my own and do not necessarily reflect the views of my colleagues at RJO or within the RJO group of companies and […]
Rope-a-dope
April 16, 2021 –New all-time highs in stocks yesterday as retail sales blew past expectations, up 9.8%. China’s GDP was released at +18.3%. Good thing the Fed is keeping rates at zero and buying $120 billion in treasuries and MBS a month. –Yields collapsed yesterday as the bond market has recently absorbed high inflation and […]
Coinbase or Corn
April 15, 2021 –Yields edged slightly higher yesterday but the 132 strike seems to have a gravitational effect on TY, now just back above that level at 132-04 vs a settle of 131-295 (1.632% in cash). Retail Sales is the big release today, expected +5.8% and +6.4% ex-auto and gas. Some estimates are higher due […]
The $64000 Question
April 14, 2021 “The $64000 Question” was a tv game show which aired from 1955 to 1958. “The first four questions were provided by an IBM sorter, a cutting edge technology of the day. The machine was used to create the impression that questions were picked randomly, when in fact all questions were pre-selected.” (I […]
We can finance it… over time
April 13, 2021 –Little reaction to three and ten year auctions, the latter of which came at 1.68% with bid to cover 2.36. Today features NFIB small business optimism, expected to rise to 98.3 from 95.8 last. CPI expected yoy Core of 1.5% from 1.3. Thirty year auction, with a small concession being built in […]
Lane change
April 11, 2021 – Weekly Comment***** The snippet below is from Tyler Neville of Blockworks: Here are the speaking events for the Fed next week. This is an absolute CLOWN show. For 12 years, the Fed ignored any signs that QE was causing a gap in inequality between capital and labor. Now, all of a […]
