Archive for the ‘Eurodollar Options’ Category
Biden: It’s a depression for millions of Americans
Oct 21. Interest rates declined Tuesday, with ten year yield down 6 bps to 3.33% and red pack eurodollars up nearly 11.5 bps. –Economic data were weaker than expected with Core PPI -0.1% and Housing Starts subdued. Beige book today. Weekly ABC consumer comfort index came out at -50, the lowest in three months. –From […]
Oct 20. Weak dollar supports all
Dollar continues to make new lows, providing support for stocks/metals/bonds etc. As ZeroHedge notes, “The USD has moved from purgatory and is about to enter the first circle of Bernanke hell.” –Today’s news includes Housing Starts expected 615k and PPI expected -0.3% with Core +0.1% from +0.2. –A couple of items relating to housing…(Reuters) – […]
Oct 19. Marginal organic demand, just govt.
Oct 19. Talk of the Fed engaging in tests for large scale reverse repos flattened the curve. Red/gold pack spread fell 10.5 bps to 212. 2/10 treasury spread fell about 6.5 bps to 245. It seems likely that actual liquidity draining operations by the Fed are far into the future, though concerns about the status […]
Oct 16, Ten year treasury testing 3.5%
In the space of a week, treasury yields have had a large yield back-up as stocks have strengthened and the dollar weakened. On October 8, the long bond was 3.99%, but was above 4.30% yesterday. Tens were down to 3.17, but now are testing 3.5% again (closed 3.465%). New recent high in 2/10 at 251.5. […]
Oct 13. A sense of distrust
The sense of distrust that Shiller talks about and that Elizabeth Warren alludes to are becoming large economic headwinds in the US economy.
Oct 12. Bond yields surge
Oct 12. Interest rates rose substantially Friday with ten year yield up nearly 13 bps to 3.38%. The primary bearish factor was Bernanke’s speech Thursday evening where he reminded the market that the central bank will withdraw liquidity at the appropriate time, but stronger than expected Canadian employment data also contributed as did the bond […]
Oct. 8
Oct 8. Light volume Tuesday as yields continue to drop. Thirty year bond auction today; the market easily absorbed yesterday’s tens. –Everything is rising on a sea of liquidity as stocks, bonds, gold rise while the dollar falters. New lows in near one-year eurodollar calendar spreads. EDM10/EDM11 is the widest spread at 136, down 7 […]
Oct 7.
Oct 7. Gold exploded to a new high, as a report that oil producers want to price oil in a basket of currencies (and gold) gained credence. The UN also called for an alternative reserve currency. –Yields rose slightly, but bonds are surprisingly resilient in the face of supply, a weaker dollar, and stronger stocks. […]
Oct 5. Employment hangover
Oct 5. Employment data was worse than expected -263k. Workweek only 33 hours. Not exactly the stuff of a strong recovery. –Not a lot of news out in the early part of the week, but plenty of bonds to be sold, kicking off with ten year tips today ($7B). 3-yr, 10-yr and 30-yr total $71B. […]
Oct 1.
Oct 1. Beginning of Q4. Chicago PMI was much weaker than expected at 46 vs 50 last, which immediately sent stocks lower, though the market recovered. Yesterday’s action indicates that equities are becoming a little more vulnerable to negative news. –Interest markets don’t tell the story of a robust economy, with Fed effective rate of […]
