Archive for the ‘Eurodollar Options’ Category
Jan 11. Portugal accepting aid package?
Interest rate futures continued to firm, with ten year note dropping another 2 bps to 3.30%. New low in EDH11/EDH12 at 57.5 bps, down 4 on the day. There was early selling of midcurve puts which appear to be exits, EOM 9750/9775 and EOU 9750/9800p spd all sold in size of 10k. There was a […]
Jan 10. Rising energy, state taxes counteract Fed stimulus
A backdrop of unsettling news continues, with European sovereign debt problems, US state debt problems (Illinois as poster child/NYT article), currency and trade war tensions, rising gasoline prices (up 9 cents to 3.09 in past 2 weeks, Chicago highest in nation), inconsistent employment growth, more mortgage/robo-signing issues for banks, and now the shooting of US […]
Jan 7, 2011. Emp situation. Europe debt problems threaten to overshadow
Employment report today. NFP expected 140k to 200k, though some estimates are higher after big jump in ADP. Some huge euro$ options trades. Buyer of 60k EDM1 9900p 6.5 (exit). Seller of 30k EDU 9937^, adding to short. Buyer of 30k EOM 9800p 18.5/19, adding to long puts; short the market. –While the data is […]
Jan 6, 2011. Huge jump in ADP payroll growth
ADP number showed large unexpected increase of 297k vs expected 100k. Interest rates jumped on the report, sending the 10 year yield up 13 bps to 3.48%. Red eurodollars sank 19 bps. There was huge buying of EOM 9800p from 18 to 19. This put traded 100k yesterday, though about 40k of that was related […]
Jan 5, 2011. Start of a slide in commodities?
Jan 5. Big slides in gold and silver yesterday, which may portend a more general commodity pullback and dollar strength. Red/green euro$ pack spread had been making new highs over past several sessions; it also came under profit taking pressure, with red pack -3 bps and greens +3.5. –There’s a note on ZeroHedge about the […]
Jan 4, 2011.
Jan 4, 2011. US interest rate futures rallied back from steep losses to close nearly unchanged. Selling pressure was evident just prior to ISM, which was strong at 57.0, though after the actual data was released buyers took over, one of which was the NY Fed with a large Permanent Open Mkt Op. The next […]
Dec 29. Rates jump on weak 5 year auction
Dec 29. What a difference an auction makes. On Monday interest rate futures rallied after a strong 2 year note auction. Yesterday prices slid after a weak 5 year auction. Ten year note is again near 3.5%. Copper made a new high, gold soared over $20/oz and silver gained over $1 as China again moved […]
Dec 28. US States’ fiscal woes threaten to blunt Fed stimulus
As an example of fiscal woes plaguing state and local governments, consider the state of Illinois. State and local governments comprise about 13% of GDP, so the crunch in this sector is likely to blunt the effects of federal stimulus measures that were recently enacted. All sorts of fees and taxes have been rising, but […]
In: Eurodollar Options
Dec 21. Spanish ten year at new low, EURCHF new low
After the Fed finished both POMO operations Monday the bond market slid back to close lower on the day. Stocks were firm. –According to an item on CBS News the latest terrorist threat has to do with poisoning food at restaurants. The report specifically cited salad bars and buffets. Whew! That means I’ll be safe with […]
Dec 17. Moody’s downgrades Ireland
Heavy selling pressure on bonds seems to have abated for now. The only economic news today is Leading Indicators, though Moody’s downgrade of Ireland could negatively impact front end over funding concerns. After the huge move down it’s not surprising to see a bounce; five year note moved from 1.03% to 2.12% in a month […]
