Nov 22. Spain, Italy, France yields all higher. Nikkei made new low…

–News this morning is a roundup of the usual suspects.  Man Global  missing funds estimate doubles to at least $1.2B.  Jefferies (JEF) continues to trade under pressure.  Concerns about China property values slipping (FT).  ZH has a piece on a probable Austria credit downgrade due to loan exposure to Hungary.  And from Reuters: ‘Almost all of the 52 [US] mayors of cities of 20,000 people or more said they “are anxiously seeking new revenue sources other than taxes” and 65 percent are considering raising fees for services.’  So expect more traffic monitoring in the name of safety (which also happens to raise revenue). It’s not surprising to see the super committee fail.  The problems of cities cited in the Reuters piece is the aggregate problem of the country.  When real estate boomed everyone increased budgets, now the process is in reverse.
–Yesterday the Chicago Fed Natl Activity Index was released, softer than expected at -0.13.  The only negative component of 4 was personal consumption and housing, enough to keep the entire series below zero. 
–New low in 2/10 treasury spread, which I marked at 169.  Ten year yield slipped to 1.96%.  Euro$ curve continued to flatten, with heavy pressure on near contracts.  Stocks, grains, metals were all down yesterday, with SPZ holding around the halfway mark of October’s low to high.

Posted on November 22, 2011 at 7:39 am by alexmanzara · Permalink
In: Eurodollar Options

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