Rare Corn
Dec 23, 2021
–Not much to report from interest rate markets yesterday as yields edged slightly lower in light trade. Tens fell 3 bps to 1.455% with Jan treasury option expiration today. There’s about 70k of open interest in both TYF 131c and 130p; the market feels comfortable right about in the middle.
–A couple of interesting headlines on FT: China merges three rare earth miners, and India suspends agricultural futures trading to alleviate inflation fears. Both are inflation related, the former concerning supply chains and computer chips, and the latter…well, self explanatory. I noted that grains appear well bid yesterday and, in my opinion will shortly surpass highs set in 2021. Nothing captures global focus like expensive basic food.
–Merry Christmas and Happy New Year!
