Archive for the ‘Eurodollar Options’ Category
July 29.
July 29. Nancy Pelosi on Thursday’s vote: “What we’re trying to do is save the world from the Republican budget. We’re trying to save life on this planet as we know it today.” I’m sure that’s very reassuring to someone starving in Somalia. I’m personally a little sick of hearing the budget impasse referred to […]
July 28. US stocks finally took a tumble as the debt ceiling impasse lingers…
July 28. US stocks finally took a tumble as the debt ceiling impasse lingers, with SP500 down 1.6% but Nasdaq down 2.7%. –There were some large buyers of deferred midcurve calls, some as block trades and some in pit. E2Z 9862c were bought 20k from 17.0 to 18.5 (EDZ3 underlying, settled 9837). E3Z 9762c bought […]
July 27.
July 27. Concerns over the debt ceiling impasse are only being reflected in gold strength and dollar weakness. Treasury yields fell again with the five year note falling 4 bps to 1.48% (auction in that maturity today). Red/green eurodollar pack spread made a new low of only 83 bps, which is the lowest of this […]
July 26.
July 26. In spite of continued verbal wrangling over the debt ceiling, ten year notes were up only a few bps to 3.00% and stocks were down less than 1%. Some “safe havens” did post new highs, including Gold, AAPL and Swissy. In the US, warnings of catastrophe barely register in the markets. In Europe, […]
July 25.
July 25. Lack of a budget/debt ceiling agreement is creating market uncertainty, though it mostly seems to be reflected in gold (new high $1617) and yen strength. Moody’s downgraded Greece again. –For all the handwringing and disaster scenarios about the possibility of a US default, ten year notes won’t move much higher than 3%, closing […]
July 22.
July 22. As the financial crisis unfolded, steps taken by the US government transformed impaired private assets into taxpayer obligations. The EU appears to be moving down this same path in backstopping peripheral state debt held by financial institutions (agreeing yesterday to a new increased Greek bailout). With US debt ceiling negotiations, the outcome is […]
July 21.
July 21. Near eurodollar contracts were stronger, while reds and greens had modest losses. Ten year treasury yield rose 4 bps to 2.93%. EDZ11 was +5.0 as EDZ12 fell 1.5. Most action in the short end appeared to be unwinding of positions as the debt ceiling negotiations come down to the wire. For example, the […]
July 20.
July 20. Amazing 30 year bond rally yesterday, apparently sparked by Gang of Six proposal in the US Senate for a debt deal that the White House endorses. Preliminary details include $3.7T in cuts, a hike in taxes of $1T and elimination of the Alternative Minimum Tax. Thirty yr yield fell 9 bps to 4.20%, […]
July 19. Gold above $1600.
July 19. Gold above $1600. “Gold hasn’t had this good a run since Jimmy Carter was in office…” (Fark.com). IBM results helped stocks rebound. Apple, which has now become the ultimate safe haven trade, reports this afternoon. I believe I saw Goldman touting the idea of buying AAPL calls in anticipation of results. –Ten year […]
July 18.
July 18. No resolution to simmering problems that are now threatening to boil over, both in europe and the US. No US debt ceiling deal. Pressure intensifying in europe as Papandreou says Greece has done all it can. In the meantime, Dallas Fed’s Fisher last week said the central bank is out of ammo. Alabama’s […]
