Archive for the ‘Eurodollar Options’ Category

News of tapering is premature

January 13, 2021 –Early morning weakness in fixed income subsided after the ten year auction; yields ended only modestly higher.  Tens up 0.7 bp to 113.8.  2/10 squeaked to a slight new high of 99.3.  Eurodollars were flat to down 1 out to five years.  Today’s news includes CPI, expected +0.4 month/month with yoy Core […]

Posted on January 13, 2021 at 5:06 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Yields march higher

January 12, 2021 –Interesting session Monday which featured continued steepening and a push to higher yields.  Tens rose 2.1 to 113.1.  Back month euro$ calendars have exploded over the past week as sentiment has shifted.  Red/gold euro$ pack spread (2nd yr forward vs 5th year forward) rose over 4.5 on Monday to 98.5, equaling 2/10 […]

Posted on January 12, 2021 at 5:36 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

LMF Acquisition Opportunities

January 10, 2021 – Weekly Comment In the late 1990’s, the dot-com bubble was in full force.  Companies that wanted to attract investors to boost stock valuations simply added “dotcom” to their business names.  There were a lot of crazy listings.  What popped into my mind, and this of course is NOT crazy, is Pets.com.  […]

Posted on January 10, 2021 at 12:23 pm by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Like putting out fire…with gasoline

January 8, 2021 –The model seems to be that you incite the crowd in a certain direction, then stand idly by as it spins out of control.  And I’m talking about the Fed here…monetary accommodation to exceed 2% inflation.  Add in the prospect of fiscal fuel and watch runaway asset inflation.  The Fed has promised […]

Posted on January 8, 2021 at 5:04 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

A bunch of f’ing bond traders

January 6, 2021 –Markets don’t like Republican loss of Senate control.  Stocks down, bonds down, dollar down.  Commodities are stronger: WTI over 50 (Saudi oil cuts), March Corn over $5, and bitcoin topped $35k. Tens are over 1% with TYH 137-08.  The modest threat of inflationary impulses may turn into palpable fear as the Fed […]

Posted on January 6, 2021 at 5:01 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Tips forecast inflation

January 5, 2021 –Despite the 1.5% decline in both SPX and Nasdaq on the first trading day of the new year, interest rates were little changed on Monday, with tens ending at 91.3 bps.  However, downside option protection was bought in both tens and eurodollars, and vol firmed in front of today’s Georgia Senate runoff […]

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

If it’s priced in dollars, it’s higher

January 4, 2021 –The dollar index is kicking off 2021 on a new low as the yuan strengthens past 6.5 for the first time since 2018.   Gold has soared $40 with GCG1 at 1935, and silver is up over $1 at 27.50.  Stocks, of course, are at new record highs.  Corn is up 11 cents […]

Posted on January 4, 2021 at 5:19 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Banquets

January 3, 2021 Sooner or later, we all sit down to a banquet of consequences.  -Robert Lewis Stevenson A crust eaten in peace is better than a banquet partaken in anxiety.  -Aesop I’ve posted a graph of M2 growth before, and anyone reading this is familiar with the extraordinary stimulus from both fiscal and monetary […]

Posted on January 3, 2021 at 9:18 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

they can’t revoke your soul for tryin’

Dec 31, 2020 What a long strange trip it’s been.-Grateful Dead lyric from Truckin’ –That’s the song spinning in my head this morning as we wrap up 2020.  Strange year.  Not much to comment on in the rate market; yields eased a shade yesterday with tens down less than 1 bp to 92.6.  Only two […]

Posted on December 31, 2020 at 5:48 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Bitcoinfinger

December 30, 2020 –GBP is around 1.3580 this morning, pressing for a close at the high of the year.  It’s at the highest level since early 2018.  Last night I watched a classic James Bond movie, Goldfinger.  In the scene where Mr Goldfinger wants to extract an outrageous global ransom, the amount is given as […]

Posted on December 30, 2020 at 5:10 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options