Oct 4. Curve flattens yet again

–ECB meeting today followed by Draghi press conference as Spain edges closer to requesting aid. In the US Jobless Claims expected 370k and Factory Orders expected -6.0 (growth has been trending lower since early 2010).
–Even the Huffington Post (one of the most anti-Romney sites around) ran a headline that said “Romney Wins the Night”. ZeroHedge points to InTrade website that had Obama immediately sliding, falling from above 70 to 67.5.
–The curve edged flatter again yesterday, with red/gold euro$ pack spread down 2.25 to 121. Red/green fell to 19, near its lowest level of the year (~16).
–Crude oil was crushed yesterday, with CLX down $4 late to 87.90. Mideast tensions are growing with Turkey shelling Syria. Iran is struggling with hyperinflation. And a story on Business Insider notes that the 12 month forward Saudi Rial rate (vs USD) has edged above 0, underscoring unease in the region.
–There was a news piece on CNBC yesterday about finances in Chicago where guest Lawrence Msall, head of the Civic Federation, noted that Chicago’s unfunded pension liability is about $20 billion, and said that closing the gap would take a tripling of property taxes. (Obviously related to the whole austerity circle in Europe). In unrelated news, Rahm Emanuel, Mayor of Chicago, fired the Ethics Board…that’s a good start….”During the quarter-century it has existed, the ethics board has been criticized as lax on enforcement. The panel hasn’t found a single case of wrongdoing by aldermen, even though more than 20 were convicted of felonies in that period.”

Posted on October 5, 2012 at 5:58 am by alexmanzara · Permalink
In: Eurodollar Options

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