November 9. random thoughts on everything (but rates)

–The range yesterday in Bitcoin, according to BBG, was 7040 to 7882, $842 or over 10% of the value.  The low of this year is 752 on 12 January, so yesterday’s range was large than its price earlier this year.  The crude oil market also had a large range, making a new high early at 57.92 and then crashing down to 56.41, a range of $1.50 or 2.6% of the value (key reversal; new high, outside day, lower close).
–Now let’s get to the treasury mkt.  The yield rose NEARLY 2 bps in the ten year to 232.4.  It’s like the video of Canadian rioting https://www.youtube.com/watch?v=YTVKSyX3yXs

www.youtube.com
Guy knocks over bin… he seems very tough. Orginal video: http://www.youtube.com/watch?v=0cbVW_QS2eE&feature=feedf

Raucous social unrest everywhere else in the world and yet the treasury market has found zen-like stability.  Which is nice.

“Hey, Lama, hey how about a little something, you know, for the effort, you know.”  And he says, “Oh, uh, there won’t be any money, but when you die, on your deathbed, you will receive total consciousness.”  So I got that goin’ for me, which is nice.
–In eurodollars, there’s just not much to talk about.  However, there was relatively heavy volume of 30k EDZ8/EDZ9 spread at 18.0.  Appears to have been exit seller, as OI was down 8100 in EDZ8 (but only 700 in EDZ9).  Settled 18 and was bid there late in the day.  One other note of interest is that high yield junk bond etf’s had decent pullbacks yesterday, testing lows from August.  I read an article yesterday about the Retail Apocalypse (thanks BC) and some of the related debt burdens, so perhaps that’s filtering through. “Retail bondholders, there won’t be any money….”
–I’ve added a chart of the NYFANG index and its relative performance to the S&P since the FANG future made its debut yesterday.  NYFANG +59% ytd.  Makes you wonder what it might have been without the hostile relationship between big tech and Trump.
Remember that sometimes not getting what you want is a wonderful stroke of luck.  The Dalai Lama (big hitter)

Posted on November 9, 2017 at 5:01 am by alexmanzara · Permalink
In: Eurodollar Options

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