Archive for the ‘Eurodollar Options’ Category
July 5. Illinois on the brink
July 5. Employment figures were a disappointment. Hourly wages were down 0.1% underscoring deflationary threat. Factory Orders also soft. –Article in NY Times outlines how bad the situation is in Illinois. “Their pension is the most underfunded in the nation,” said Karen S. Krop, a senior director at Fitch Ratings. “They have not made significant cuts […]
July 2. Baltic Dry Freight Index falling hard
July 2. Huge moves. Aug gold down $46. Crude down $3. EUR/USD was up three big figures. Huge decline in dollar index. Stocks lower early but came back strong. –Near eurodollars edged higher. There was a seller of about 10k EDN 9837p from 4 to 3.5, which briefly caused EDU to go 9836 bid. However, […]
July 1. New lows China and Japan
July 1. ADP data (employee throws dart) was much weaker than expected 13k vs 60k. Chicago PMI came in about as expected –There was a buyer throughout the day of about 15k EOZ 9862^ for 45.5 to 46.0. –Today’s news includes ISM expected 59.0 from 59.7. Jobless Claims expected 455k. –New lows in the curve […]
June 30
June 30. New low yields in treasuries as tens sliced through 3% to end at 2.96%, down 7 bps. Stocks plunged due to downward revisions in China growth rate, a steep drop in Consumer Confidence in the US, and the disconcerting news that Russian spies are hotter than ours. http://www.huffingtonpost.com/2010/06/29/anna-chapman-photos-pictu_n_629418.html#s107674 –Many eurodollar calendar spreads made […]
June 28. No good news…
Interest rates fell as talk of another round of QE circulated, of up to $5 TLN. Nobody seems to be dismissing the idea out of hand…grudging acceptance that further gov’t action is needed. Bloomberg reports that 46 states face Greek style deficits: “State spending is 12% of GDP.” –Two year yield has returned to the […]
O’Connors and the early 1970’s grain rally
One of the great things about the trading floor is some of the market lore that is handed down…maybe a lot of it falls under the heading of ‘urban legend’…but I keep thinking about a story I heard about the O’Connor brothers making a fortune…probably in the 1970’s.* I recall walking up to the […]
June 25.
Interest rate futures traded a bit heavy as auctions concluded this week with yesterday’s 7 year. In spite of a soft close in stocks treasury yields edged slightly higher. July treasury options expire today. –One year calendar spreads in eurodollars remain quite tight, with EDH11/EDH12 notching a new low at 65.5 bps. Red/green pack spread […]
June 24. FOMC slightly more downbeat
No surprise here: the Fed is on hold, but Hoenig again dissents in favor of higher rates; new home sales fell in May after the federal tax credit expired; a NY pension fund sued BP because the stock went down. Nothing that even raises an eyebrow. –A weaker than expected 5 year auction caused a […]
June 23.
As the Fed ends its 2-day FOMC there is a barrage of bad news about state budgets and cutbacks. The UK just raised the VAT tax to 20% from 17.5%. And May existing home sales data drives home the point that without gov’t subsidies housing and the economy in general is weak. Rates are on […]
June 22. Moves related to China fizzle
Almost all of the moves initially associated with China’s revaluation reversed. For example, gold was up $5 early but closed down $25 on the day. Stocks were up but gave away all gains. The euro slid. BP was down 4.7%. According to zerohedge Moody’s put out a piece detailing widespread ramifications if BP goes bankrupt. […]
