July 29.

 Yields fell as Durables were weaker than expected, 5 yr auction went well, and Beige Book noted sluggishness in real estate and some districts.  Today brings 7 yr auction and Job Claims, expected 460k. 
–Every day brings a slightly higher EUR 3 month setting, today at .899, while 3 mo $ libor sets lower, now at .46563, lowest since the middle of May. 
–There’s much discussion about whether or not the US economy goes into “double dip” recession, but whether growth actually turns negative again is almost meaningless.  Growth of 1-2% is not going to do much to reduce employment.  What does seem pretty clear is that those expecting a “V-shape” recovery have quieted down.  Interest rate markets foretell very low growth if any with low inflation. 
–Many commodity markets are on a tear, especially wheat which made a new high and is better yet this morning.  Nov Beans threatening new highs, as is coffee.  Oct Sugar made new recent high yesterday.

Posted on July 31, 2010 at 9:05 am by alexmanzara · Permalink
In: Eurodollar Options

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