Archive for the ‘Eurodollar Options’ Category
Banks dragging down stocks
September 24, 2020 –Stocks were pummeled yesterday but yields barely budged, with tens at 67 bps. Precious metals also came under heavy selling pressure. –On Monday large US bank stocks opened with a gap lower (JPM, C, BAC etc) and closed on new recent lows yesterday. The attached KBW global bank index chart is representative. […]
In: Eurodollar Options
Central Bank Communication
September 23, 2020 –Little reaction to Powell yesterday. His prepared testimony emphasized the Fed’s lending function as a backstop, and said the Main Street program might not be appropriate for many COVID-impacted businesses, but that the Fed has done a lot to make general credit conditions looser. In my opinion he’s placing responsibility for targeted […]
In: Eurodollar Options
A little help?
September 22, 2020 –Powell and Mnuchin testify in front of Maxine Water’s House Financial Services Committee today. While the panel is likely to press for more direct support to small business, Bullard yesterday helpfully said that there’s enough fiscal stimulus in the pipeline to encourage a self sustaining recovery. Stocks are apparently of the opinion […]
In: Eurodollar Options
All the good news is out
September 20, 2020 -Weekly comment Last week featured the FOMC meeting. Here’s the summary: funding rates will be held near zero for the next several years in support of our new inflation-averaging scheme. We will continue our QE buying at around the same pace as currently. The economy needs more fiscal support. Let’s take the […]
In: Eurodollar Options
Rates unch’d; new high beans
Sept 18, 2020 –Just be a few snippets to end the week. Not much of a theme in rates; little movement or net change. Tens unch’d at 68.2 bps. In dollars there was some noticeable buying of 100 calls at 0.75. Settled 1.0 on volume 75k vs 9980, but open interest was only up 5600. Yesterday’s […]
In: Eurodollar Options
Gamma warning
Sept 17. 2020 –Markets not overly enthused with the FOMC meeting yesterday. Tens closed slightly higher in yield at 68.5 bps. Eurodollar curve was more or less unch’d out to blues. Fed holding rates low until inflation exceeds 2% for some time. Eurodollar options believe it…most back straddles lost 1.5 to 2.5 bps, which doesn’t […]
In: Eurodollar Options
With fingernails that shine like justice
September 16, 2020 I want a stock with a smooth liquidationI want a stock with good dividendsAt Citibank we will meet accidentallyWe’ll start to talk when she borrows my pen Cake – Short skirt/Long jacket –I had recently read that Powell & Co would prefer to address the risk of equity market froth with macroprudential […]
In: Eurodollar Options
Man the harpoons
September 13, 2020 On a week that featured over $100 billion in treasury note/bond auctions, and an announcement that the deficit hit $3 trillion with a month to go in the fiscal year, and with government spending at a record $6 trillion, the ten year yield eased 5.6 bps on the week to 66.6. The […]
In: Eurodollar Options
Worlds apart
September 11, 2020 –From Greenspan yesterday, “My overall view is that the inflation outlook is unfortunately negative and essentially the result of a huge increase in entitlements that are crowding out private investment and productivity growth, which is slowing down to about a 1% annual rate.” –An early morning stock rally Thursday gave way to […]
In: Eurodollar Options
Soft bank… getting softer
Sept 8, 2020 –Yields surged Friday as stocks rebounded, with tens up 9.4 to 71.6 and thirties up 12.2 to 1.463%. Curve steepened. However, the bounce in stocks off Friday’s lows has failed, with Nasdaq currently down 260 to 11289. There have been a lot of stories about Softbank having been the ‘Nasdaq whale’ that […]
