May 20. Fed in no hurry to sell MBS according to minutes

Fed hurry to sell MBS.  Not much change in rates yesterday.  However, Aussie was crushed along with many commodities. Platinum down 5%. This month Aussie (June futures) has gone from 92 cents to 84.  Yesterday it plummeted 200 to a low of 8331, which is well lower than Feb low of 8473. July Crude also took out Feb low on an interday basis.  In early May CLN traded near 90, now around 7552.  In mid April July Copper was 360, in the last few days it has neared Feb low of 285.25.  These are substantial moves. People look at the “flash crash” which also neared Feb low in SP, as if it’s a crazy market move, yet other markets are also seeing these magnitudes of moves and most signal a deflationary environment. 

–Zerohedge has a story citing Goldman on mortgages: 1 in 10 are late on payments, 1 in 20 are in foreclosure.  Also a story on capital flight from Germany to Switzerland, causing massive Swiss intervention.

–News today includes Job Claims expected 440k.  Leading Indicators expected +0.1% and Philly Fed expected 21.5 from 20.2 last.

Posted on May 30, 2010 at 3:35 pm by alexmanzara · Permalink
In: Eurodollar Options

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