Feb 25. Bernanke semi-annual testimony Tuesday

–GBP made new low as Moody’s downgraded the UK late Friday.  USD/JPY near new high apparently due to Kuroda as choice to head BoJ (favors monetary expansion). EUR is currently firming, awaiting Italy election outcome.  HSBC flash PMI for China lower than expected at 50.4 (from 52.3 last).
–Bernanke speaks in Congressional semi-annual testimony on Tuesday.  Bloomberg reported that earlier this month on 5-Feb, Bernanke “minimized concerns that the central bank’s easy monetary policy has spawned economically-risky asset bubbles in comments at a [private] meeting with dealers and investors this month…” For example in farmland and high yield debt. I haven’t watched this closely, but have seen more put buying recently on HYG, the high yield etf.  http://www.bloomberg.com/news/2013-02-22/bernanke-said-to-minimize-asset-bubble-concern-at-meeting.html
–Treasury auctions 2’s, 5’s, and 7’s starting Monday. Yields edged lower on Friday with US tens down 1 bp to 1.965.
–Darden restaurants (Olive Garden, Red Lobster), joined Walmart in blaming the payroll tax increase and high gasoline prices for sliding same store sales.  In other company specific news, Yahoo is ironically banning employees from working from home: “To become the absolute best place to work, communication and collaboration will be important, so we need to be working side-by-side. That is why it is critical that we are all present in our offices. Some of the best decisions and insights come from hallway and cafeteria discussions, meeting new people, and impromptu team meetings. Speed and quality are often sacrificed when we work from home. We need to be one Yahoo!, and that starts with physically being together.”  Doesn’t that undercut products like yahoo chat?

Posted on February 25, 2013 at 5:13 am by alexmanzara · Permalink
In: Eurodollar Options

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