Oct 5. BOJ eases, new high gold

Oct 4.  Interest rates continue to edge lower, expecting further QE.  China’s support of Greek bonds and other euro denominated debt was probably also a factor. (Can now add Irish bonds to portfolio).  New lows in some one-yr euro$ calendars, for ex EDH11/12 down 3 bps to just 38.  
–Bloomberg ran an interesting story about Mayor Bloomberg, who said NYC pensions have unrealistic assumptions of 8% returns.  There is a projected $3.3 B budget gap for NYC fiscal 2012.  The story further says that NY state cut its pension assumption down from 8% to 7.5%.  I would say that’s still avoiding reality, when short rates have been cut from 5% to zero, ten year note rates hover between 2.5-3% and GDP growth is expected around 2% at best.
–BOJ eased, looks like yen briefly weakened, Nikkei up 1.5%.  Ireland set for possible downgrade by Moodys.  Gold up $10 to new high.   
–Terror plot against airports apparently thwarted, though we could once again see stock weakness (de-risk trades) on Friday afternoons?
–Small sign of the times in terms of gov’t/market interaction.  US gov’t brought charges against Visa, Mastercard, and AmExp.  This first two paid the ticket (settled). AXP decided to fight.  Stock trounced, down 7%. As they say in Chicago, Don’t fight City Hall.
–Today’s news includes non-mfg ISM expected 52.0.

Posted on October 5, 2010 at 4:30 am by alexmanzara · Permalink
In: Eurodollar Options

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