Mar 17. No change in FOMC
The Fed changed little in its FOMC statement, causing a rally in, well, everything. Ten year yield fell over 5 bps to 3.65%. Gold soared $20. Stocks rallied to new highs. It’s all about liquidity.
–New lows in near eurodollar calendar spreads, with EDM0/EDU0 at 15.5 bps. EDM0/EDM1 matched its previous low at 114.5. EDZ10/Z11 actually gained 1.5 bps to 144. The one year spreads have been in tight ranges of 15 to 20 bps for a couple of months.
–2/10 treausury curve flattened to slight new low of 274.5. Two year yield back at 90 bps.
–Just skimmed a few headlines this morning. The administration says unemployment to remain high through 2010. CA says 25% of residents have no health insurance, citing job losses as one of the reasons.
