Feb 23. Fischer speaks this evening
–Slow trading day yesterday. Chgo Fed Nat’l Activity Index was positive for only the third time in the past thirteen months, though the 3-month moving average remains negative. There were a few protective buys of midcurve puts, for example 0EH 9887/9900 put spread bought for 1.5, and 2EH 9862 puts bought for 1.5 as well, settled 1.25 ref EDH’19 9893.0. Crude oil was well bid (though lower this morning), as were stocks. The ten year yield edged up 1.6 bps to 176.4. Curve continues to flatten with the front end down slightly but all contracts from golds back (EDH’20 and beyond) were either unch’d or 0.5 higher. New low once again in red/gold pack spread at 82 bps.
–Existing Home Sales out today expected 5.32 million annual rate. Stanley Fischer speaks this evening at 8:30 EST on Developments in Monetary Policy.
–A couple of other quick points:
Nice rebound yesterday in Brazil Bovespa index, up over 4% on stability/rally in commodities.
Reuters reports that Illinois Governor Rauner may block the Chicago Public Schools from issuing more debt
EURGBP marching higher due to Brexit fears, another problem for Draghi.
