Nov 7.

So I guess the Republican strategy of wooing women voters with enlightened ideas on rape and abortion didn’t work out. Congratulations to Obama and his supporters, but at least can we get rid of Geithner?
–The latter part of yesterday’s session saw rates jump with tens up nearly 6 bps to 174. Blue Dec (EDZ15 underlying) puts were bought heavily; open interest jumped over 100k in blue dec puts alone. The 9900 straddle traded 22.5 late, currently 20/21 and most likely heading lower, although futures have jumped from that strike to 9908. TYZ 133 straddle traded 1’10 early yesterday, but settled 1’17 as futures sold off. Now 0’63/1’01.
–This morning, back month eurodollars and treasuries are rallying, and have fully erased yesterday’s sell off. Is it because Bernanke can now keep easing? Because we face a more daunting prospect of the fiscal cliff due to political gridlock? Because we can limp along with anemic job growth at stagnant pay levels? Probably a combination. In any event, the lack of yield in fixed income remains supportive of equities as money searches for returns.
–Ten year auction today followed by bonds tomorrow.

Posted on November 12, 2012 at 7:32 am by alexmanzara · Permalink
In: Eurodollar Options

Leave a Reply