July 21.
July 21. Near eurodollar contracts were stronger, while reds and greens had modest losses. Ten year treasury yield rose 4 bps to 2.93%. EDZ11 was +5.0 as EDZ12 fell 1.5. Most action in the short end appeared to be unwinding of positions as the debt ceiling negotiations come down to the wire. For example, the was heavy buying of EDZ 9962c against 9900/9937p spd, but prelim open interest sheets indicate a drop of 57k in the calls. Futures open interest declined total of 61k contracts.
–China PMI fell below 50 to 48.9. Debt problems around the world would become more manageable with higher global growth rates, but we seem to be settling in for moderate growth at best.
–August treasury options expire Friday.
–Today’s news includes Jobless Claims expected 415k. Philly Fed expected to bounce back to 5.0 from a miserable -7.7 last. Leading Indicators expected +0.3.
