Archive for the ‘Eurodollar Options’ Category
Feb 4. CRB and SPX…identical moves since QE2
Feb 4. Once again interest rate futures were pounded, with green euro$ pack down almost 10 bps…down 22 bps in two days. Ten year note has been in a range of around 3.28 to 3.53 for the past two months, but ended at 3.54..clearly probing for higher yields. New highs in red/green euro$ pack spread […]
Jan 31. Egyptian protests spreading
Massive protests in Egypt overwhelmed all other news, sending stocks lower and treasuries higher. Demonstrations in mideast nations have the potential to spread like wildfire, sparking concerns in Saudi Arabia, Libya, Yemen, etc. Oil exploded as a result, as did precious metals. –I wonder why now? Mubarak has been there for 30 years. Most of […]
Jan 27. FOMC ignoring inflationary signals
The Fed remains fairly downbeat on the economy, and insists on maintaining that inflation measures continue to trend lower. In some parts of the world, for example North Africa, it appears as if food and energy prices actually mean something. And when deposed leaders flee, they do so with gold. But here in the US, […]
Jan 24. The end of ‘adult supervision’
Obama’s State of the Union and FOMC both this week, (tue/wed). Obama’s new pro-business stance, along with focus on budget cutting and education are designed to play well to stocks. Continued loose Fed policy is also supportive. However, restraint in financial mkts is coming from outside, with rate increases in China and Brazil, and high […]
Jan 21, 2011. States explore bankruptcy
–A few notes this morning. NYT article says Congress is quietly considering how to allow states to declare bankruptcy or otherwise eliminate crushing debt and pension obligations. CA Gov Brown declared a ‘fiscal emergency’. Article on BBG says Spain may have a difficult time lining up investor support for Cajas. Margins again raised on silver […]
Jan 19. Curve steepens; 2/30 near 400 bps.
Curve steepened to new highs with 2/10 up about 3 bps to 278. Red/gold also made a new high of 285.5, up 7.25 bps on the day. That’s pretty much as high as red/gold had been all last year, though in mid Dec before the roll it got to around 300. Whether due to signs […]
Jan 17. MLK day starts a quiet week/shipping data raises questions
–Light news week. China’s President Hu visits the US, heightening dollar/yuan issues. TIC data tomorrow. –A lack of treasury auctions combined with about $15-20 billion Fed buybacks should be supportive of bond prices this week. –While US equity markets remain well bid, as do commodity markets, I find it a bit puzzling that the Baltic […]
Jan 14. Trichet voices inflation concern, EUR rallies
Jan 14. Ten year treasury yield fell 6 bps to 3.30% as this week’s auctions culminated with the 30 year bond. Jobless claims jumped 35k, though trade data signified stronger GDP growth. The curve was flatter with 2/10 down about 5 bps to 272. European rates went the other way as Trichet voiced concern about […]
Jan 13, 2011. Sell volatility in a managed financial world
Portugal’s bond auction yesterday was anticlimactic as it was supported by China. It is as if the market has found religion in the idea of global central planning and a managed financial system. Such confidence, and the idea of a monetary authority ‘put seller’ has translated into heavy selling of US financial options. For example, there […]
Jan 12. Portugal’s 10 yr auction below 7% yield
–Much awaited Portugal bond auction went off successfully, aided by ECB and Asian buying. Pressure abating in Europe at this moment. –Today is the US ten year auction, followed by 30 year bonds tomorrow. The treasury is also set to release tentative schedule for the next round of Open Market Purchases. There are a couple […]
