Archive for the ‘Eurodollar Options’ Category
Nov 6. Underdog
You got no time for the messenger/ Got no regard for the thing that you don’t understand/You got no fear of the underdog/ That’s why you will not survive. -Spoon “Ireland’s class of 2016 stamped their names into the history books as Joe Schmidt’s side dispatched New Zealand 40-29 in Chicago for their first victory […]
Nov 4, 2016. Unemployment and the Cubs parade….related?
–Payrolls today expected 173k. –A few notes about yesterday. The curve edged to new recent highs. For example, the euro$ red/gold pack spread rose 1.25 bps to close at a new high 61.75. 2/10 treasury spread rose 2 bps to just over 100 bps. However, the real signal came from 5/30, which jumped 4.7 bps […]
Nov 2. Beeks
–“Where in the hell is Beeks?” Orange juice futures soared to a new high to start November, jumping nearly 5%. However, a somewhat more important global commodity, crude oil, has gone in the other direction and is sub $46/bbl this morning, having been above $52 in mid October. –Rate markets are taking their cue from […]
Nov1. Implied vol firms as data looms
–China’s mfg PMI was a bit better than expected at 51.2, but the BoJ downgraded growth and inflation projections. US yields are edging a bit higher and precious metals are continuing to rebound with gold up $10 this morning. However, crude oil remains near yesterday’s low, having sold off nearly $2/bbl Monday. Late yesterday CLZ6 […]
Oct 30. Seven years of college [or CB policy], down the drain
Flounder: Will that work? Otter: Hey, it’s gotta work better than the truth. Pretty much sums up the election cycle. (youtube link at bottom- Animal House) ******************************************************************************** Yields jumped last week and the curve steepened to new recent highs. First, a couple of curve notes. The red/gold euro$ pack spread which I highlighted a couple […]
Oct 28. Go Cubs go
–Just because it ‘can’t’ happen, doesn’t mean it won’t happen. Interesting day in global markets yesterday with yields pushing higher in a bear market steepener. Ten year yield rose 5.3 bps to 184.1. 2/10 treasury spread rose 4.3 bps to a new high of just over 96. As pointed out yesterday, in euro$’s the red/gold […]
Oct 27. A few technical notes; FOMC and ED quarterly expiration dates
–7 yr auction today. AMZN and Alphabet report. Note that the Russell 2000 (small caps), closed at their lowest level since early August. Not exactly a ringing endorsement for all stocks. RTRS: ‘Kuroda said on Thursday the central bank would not try to push down super-long government bond yields – even if they rise […]
Oct 25. US long end trades soft
–Light volume Monday. Front end of the curve a bit weaker, with a buyer of 30k EDX 9900p for 0.75 to 1.0 ref 9904.5 in EDZ6 (open interest fell by 37k). The two year yield rose 1.5 bps in front of today’s auction. AAPL reports today as Nasdaq trades at the high, and Cubs/Indians start […]
Oct 23. Boomerang
Last week I cited news reports that Vice President Joe Biden warned Russia that the US was considering cyber attacks against Russia. And on Friday the US itself was subject to a massive cyber interruption. Hey Joe, you pushed the wrong button. I guess we’re lucky he didn’t threaten someone with nuclear annihilation. Below is […]
Oct 20. Conflicting comments
–“Every day that central banks hold out the false hope of a paper solution is a day that chips away at the productive foundations of our economy.” -John Hussman. –ECB today, with most looking for an extension of QE in December. The euro made a new low yesterday and is around the Brexit vote low. […]
