Dec. 10yr. Treasury option update.

Dealers (west coast fund manager) noted previously, continue to sell the Dec. 115 puts. Note Goldman (350) was a seller outright as well as selling vs. the 110 put, as was Smith Barney (370). That was the highlight of yesterdays activity. As can be seen after rallying last week in the wake of very successful treasury auctions last week prices have stalled, and overall remain in a fairly narrow band. This price behavior is conducive to selling option premium.

Treasuries look to remain supported as long as uncertainty remains. See below for details.

9/15 players listed below.

287	Bot			500		V116/17p					15		11726-26+				High			Low		Close
287	Bot			2000		V119c					16		11724-24+				118045			11717		117175 -14
287	Bot			500		V119+c					10
287	Bot			2000		V19c					14		11717+-18				Vol.			9/14/09		9/11/09
560	Bot			1000		Z119+c					55		11723-23+				Oct			8.4		8
660	Bot			500		Z121+c					22						Nov			8		7.8
685	Bot			1000		V20c					5		11717-17+				Dec			8		7.8
197	Sold			1500		V117p					24		11726+-27
350	Sold			2000		Z115p					41/42
350	Sold			3000		Z110/15p					34/35		11723-25				17+ Stdl
370	Sold			1000		Z110/15p					35						Oct			127-30		130-32
505	Sold			1300/650		Z+19c  Z-16+ Stdl					104/328		^Z11726+				Nov			228-31		230-33
660	Sold			1000		Z15p					41		11724-24+				Dec			312-15		314-16
Local	Trade			1000		Z10/13/16p Fly					26		^Z11723