Nov 20. Free the rates

–The story continues to be a flattening curve, with the 2yr note at a new high yield of 172.5 (+1.7 on the day) and tens at 235.2 (-0.7).  2/10 closed 62.7 and red/gold euro$ spread at 38.375.

–The news this morning is that Merkel was unable to form a coalition government.  EUR sold off buy was able to bounce back.  There is an underlying treasury bid as December options expire on a holiday shortened Friday.

–According to last data on Bloomberg: GDP 2.8, CPI 1.5, Unemployment rate 3.6.  Oh, that’s data from Germany…where the 2 yr yield is negative 73 bps.  In the US GDP 2.3, CPI 1.7 and Unemp Rate 4.4.  Yet US 2 yr is 250 bps higher.  Amusing to think about, but perhaps the least government interference in bond markets is China, where the ten year is flirting with 4%.

–Here is a pretty fascinating story about building staggering wealth from scratch.  Spoiler: It doesn’t have anything to do with crypto-currencies.  It’s a bit old but I don’t think I’ve linked it before.  Activity in markets is such that perhaps there’s a few spare minutes for this one…

Posted on November 20, 2017 at 5:21 am by alexmanzara · Permalink
In: Eurodollar Options

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