BOB spreads are widening out. If you look at the levels these trades were being placed on the 27th. http://financialfutures.typepad.com/kiss/2010/01/treasury-trading-update-23.html. and where they are trading now, see below you will note that the bond traded a couple of ticks lower on the last trade from where it traded on the 27th, while the ultra long has rallied ½ point.
GOLDMAN SOLD
-200 118-08 USH
+134 123-18 ULH
GOLDMAN SELLS AGAIN
-400 118-13 USH
+268 123-24 ULH
GOLDMAN SOLD
-400 118-24 USH
+268 124-10 ULH again compare these to the ones Merril did on the 27th.
Else where option trading fairly quiet with one resolute player taking advantage of the rally to scale into some long Mar. 116.5 puts. I like fading this move as a lot of it is front running a well known index, meaning a lot of this is probably hot money that will not be sticking around.
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