Archive for the ‘Eurodollar Options’ Category
Oil is climbing this morning, as are global yields
April 28, 2026***************–CLM6 (June WTI) is just below $100 bbl as of this Tuesday morning, last at 99.67 +3.30. The highest settle of this particular contract has been 99.38 on 7-Apr. Coinciding with higher energy prices, global 10y yields are moving up and appear to want to break out to the upside. –First, BOJ did […]
Big Event Week
April 27, 2026*************** –Friday featured a small reprieve from the move to higher rates. 2y yield fell almost 5 bps to 3.774%. 10s -1.5 to 4.307%. Strongest SOFR contract was SFRH7 which rose 6 bps to 9642 (3.58% vs EFFR of 3.64%). Low last week was 9633.5. Peak SOFR contract is SFRH8 at 9657. Ten […]
World’s a Casino
April 26, 2026 – Weekly comment************************************ The whole world, unfortunately, has become somewhat of a casino. And you look at what’s going on all over the world, in Europe and every place they’re doing these betting things. I was never much in favor of it, I don’t like it conceptually, but it is what it […]
Weakness persists in red SOFRs
April 24, 2026**************** –Yesterday morning I thought bonds might face a hard slide right off the open. Couldn’t have been more wrong. On the other hand, Pierre had it a bit worse, From BBG: “Energy trader Pierre Andurand’s largest hedge fund plunged about 52% in the first half of April, wiping out first quarter gains made on […]
Sell bonds, buy lipstick
April 23, 2026***************–Quiet session Wednesday with little change in yields though front end remains pressured. 2y +1.5 bps to 3.792% and 10y +0.6 bp to 4.293. Last few sessions featured TY put buyers and this morning rates are higher globally. Highest 10y gilt yield was 4.99 in March, currently just above 4.96. USM6 is printing […]
Rates a bit higher, pushing back ease
April 22, 2026**************–Short end of US curve reacted negatively to data. Retail Sales +1.7 headline (1.4 exp) but more importantly ex-auto and gas +0.6% vs expected +0.3. ADP weekly employment also stronger than forecast at 54.7k. 2y treasury jumped 6.5 bps to 3.777%. Curve flatter with tens only up 4 bps to 4.287%. On the […]
CAR… “blind capital …seeks for someone to devour it.”
Could be a tinder tagline. But Walter Bagehot was editor of the The Economist in 1856. Every now and then, from causes which are not to the present purpose, the money of people of this class — the blind capital…of the country — happen to be particularly large and craving; it seeks for some one […]
Back and fill from Friday
April 20, 2026*************** –Friday’s ceasefire moonshot to new highs in stocks is being tempered this morning as the US seized an Iranian cargo ship over the weekend. On Friday CLM6 plunged 8.58/bbl to 82.59. This morning it has rebounded to 87.30. ESM last 7130, -31.50. –On Friday yields fell with 2s and 5s leading. 2y […]
Leverage risks abound; market discounts
April 19, 2026 – Weekly comment*********************************** (Bloomberg 4/17) — A buildup of leveraged hedge fund bets in Treasuries has left investors exposed to abrupt position shifts that could amplify stress across global bond markets, according to Apollo Global Management Inc. Chief Economist Torsten Slok. Hedge funds now own roughly 8% of the entire $31 trillion US Treasury market, according to […]
No sellers left with stocks at new highs
April 17, 2026************** –Yields rose Thursday, with tens up 2.9 bps to 4.307%. Buyer early of 50k TY wk2 May 112.5c for 10, covered 111-14, 16d. These calls expire on NFP day, May 8. (settle 8 vs 111-07). Last week he bought 50k TY wk1 May 112.0c which also settled yesterday at 8. On the […]
