Oct 23. Q3 UK GDP -0.4%

Curve steepened yesterday, with red/gold pack spread up 4 bps and 2/10 treasury spread up 2+ bps.  Stocks rebounded, erasing Wednesday’s losses.  Today’s news includes Existing Home Sales, expected 5.35M vs 5.10 last.  This morning Q3 GDP for the UK was unexpectedly negative (-0.4%), the sixth consecutive decline. 
–(AP) Christina Romer, chair of Econ Advisers, says spending from the $787 billion economic stimulus has already had its biggest impact on growth and will likely not contribute to significant expansion next year.
–The Fed’s balance sheet hit record high $2.174T, and total bank reserves also hit a record of $1T. (sero hedge). Also, the length of time the average unemployed has been without a job has just passed an all time record 26 weeks.
–NY must be quietly celebrating news of record bonuses for some financial firms, as tax revenues are likely to see a significant positive impact. Chicago, on the other hand, is spending part of the parking meter privitization money, and looking for other assets to sell to try to plug the budget. 
–Yesterday I rec’d 2 emails within about 3 minutes from different realtors, one with subject line “Massive price reductions” and the other “Amazing Price Reductions”.  One is near west of the loop, (walking distance), $172k for one bedroom with free parking.   The lowest price I’ve seen for new construction near downtown.

Posted on October 23, 2009 at 4:47 am by alexmanzara · Permalink
In: Eurodollar Options

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