Aug 6

Aug 6.  Ten year yield rose nearly 9 bps yesterday, rising above 3.75%.  After a weak open, soft economic reports (Factory Orders and non-mfg ISM) caused a rally, which evaporated at the end of the day. EDU10 closed at 97.99, down 6.5 on the day; U9/U10 spread closed at a new high of 152.5.  The market continues to trade bearishly, clearly shown yesterday as “bullish” economic news (including ADP -371k) couldn’t spur a positive close.  The prospect of next week’s supply is probably a factor.  Interestingly the WSJ reported that Treasury is likely to issue more TIPs in a nod to China’s concerns about inflation.
–Today’s news includes Job Claims, expected 575k.
–Article from Reuters this morning says Costco, the largest U.S. warehouse club, saw same store sales in July decline 7%.  In the US that figure is 8%.  Not exactly a sign of a resurgent consumer.
–Citi shares broke a NYSE one day volume record at 347 million according to Reuters. According to, AIG which surged 63%, traded 135 million, ironically the same amount of outstanding shares. WSJ reports that AIG Breakup could cause the NY Fed to pay $1 B in fees to Wall St firms (after the $180 billion already spent).  All of which likely contributed to another $100 M day for GS.

Posted on August 6, 2009 at 8:59 am by lesliemanzara · Permalink
In: Eurodollar Options

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