May 3. NFP Friday

–Employment report today with NFP expected 140k  Copper having a strong rebound this morning, up 10 cents.  Spanish tens below 4%. EU lowered forecasts for growth.
–German bund futures exploded to a new high yesterday above 147, as Draghi said the ECB had an open mind regarding negative deposit rates.  Bund yield hit 1.16%.
–US rates fell marginally as well, with tens at 163.  Curve made a new low with 2/10 at 143.  Stocks bounced as financial assets are chased; IBM was able to sell 7 year debt at 1.625.
–Financier Ron Perelman was on CNBC yesterday morning and encapsulated the current environment when asked about the companies he owns (paraphrasing) ‘no top line revenue growth, for example Revlon has something like 2-3% and that’s the best one.  We see only 0-2% gains in revenue but have been very good at controlling expenses.  No increases in employment.’
–Several analysts and news sources yesterday highlighted the extreme level of NYSE margin levels.  Last couple of times margin debt has been this high stocks have had large sell offs.

http://www.bloomberg.com/news/2013-05-02/near-record-nyse-margin-debt-leads-to-caution-chart-of-the-day.html
–Additional US news includes non-mfg ISM and Factory Orders.

Posted on May 3, 2013 at 5:56 am by alexmanzara · Permalink
In: Eurodollar Options

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