Silver > $19

July 9, 2020

–New high China stocks today and as of this writing spot silver has pierced $19 in what could be an upside breakout.  

–Dull trading in rates yesterday with yields little changed as tens closed at 65.3 bps, essentially unch’d.  The highest point on the euro$ curve is EDU’21 at 9983 or 17 bps.  There was one large trade, a new buy of 36k 2EZ 9950 puts for 4.5 cov’d 9969 with 5 delta.  Settled 4.0 vs 9974.5 in EDZ’22.  

–Yesterday’s consumer credit report surprisingly indicated that credit cards were paid down in May, with revolving debt falling from 1019.9B in April to 995.6B in May.  Perhaps people were paying credit cards instead of rent, as a survey from Apartment List was cited on CNBC that 19% hadn’t yet made their housing payment in July (mortgage or rent).  An additional 13% only made a partial payment.  14.8% deposited funds in a Robinhood account.  OK I made that last part up, but if approx 30% of people aren’t making housing payments, it’s not a sign of a vibrant economy.

–As @Rishisays notes (“They said supply can’t move bond yields anymore”), Canada bond yields jumped on a plan to sell new debt to cover a yawning deficit.  Tens jumped to 57 bps from 51 yesterday and 30;s to 109 from around 102.6 before the announcement.  Trudeau ought to have his central bank buy that stuff. 
–Jobless Claims today expected 1.375m.  

Posted on July 9, 2020 at 5:31 am by alexmanzara · Permalink
In: Eurodollar Options

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