Jan 2, 2014. Ten year yields poised to test higher levels

Jan 2, 2014.  The new year begins with 3% ten year note yield and stocks continuing to power higher.  New high settle just below 306 in red/gold pack spread.  While there has been relentless buying of green midcurve puts, weakness in the curve seems to be edging out a bit further.
–Today’s economic news includes Jobless Claims 338k.  PMI expected 54.5 and ISM 57.0.  Several Fed speakers tomorrow including Bernanke in the afternoon.
–I read recently that at its core, the Japanese problem is one of demographics.  The population has been in continual decline since 2007, and last year the plunge hit a new low with a decline of 244k, surpassing 2012’s fall.  At the same time, tensions with China are constantly edging higher.
–Emerging markets still reeling from political crises, with a new low in Thai baht today.  Perhaps regional uncertainties are creating a foundation for gold prices, which featured a rapid rebound from a new low of 1180 to close above 1200, and up another 20 this morning.

Posted on January 2, 2014 at 5:17 am by alexmanzara · Permalink
In: Eurodollar Options

Leave a Reply