Treasury Trading Update

Moving to the sidelines.

Going forward from here market remains in an overall uptrend for the intermediate term with support being violated but not on a closing level, see daily trend line below. Once the market signals a new down trend is in place rooted by lower highs and lower lows new shorts can be added too. Bulls can argue here that the market had a strong session Friday, as volume was a respectable 1.1 million contracts and open interest rose by almost 52K with prices gaining 14.5 ticks. External factors including month end extension of duration indices and a pullback in equity prices along with continuing concerns in Europe over Greek debt have been dominating trading activity. At this moment the risk is for those forces to keep forcing a bid in treasuries, even though the longer term trend remains for rates to rise and those macro long term trends are still quite intact.

Option flows from Friday session posted below.

10yr.
006	Bot	500	H16/17p	13	11727-27+
006	Bot	900/1350	H+17/-16p 1x5	9	11800-01
287	Bot	8000	M20/22c	14-15	11715-20
287	Bot	1000	H17p	28	^H11716
287	Bot	7000	H15/16+p	3
287	Bot	500	H15/16p	5	11802+-03
287	Bot	1500	J18c	34-35	11803-05
350	Bot	3000	H-/M+18c Cal  M+18/19c	44-46	11727-27+
370	Bot	500	H18/19/20c Fly	13	11717+-18
370	Bot	2500	J14+p/H-19c Combo	28	11719-19+
370	Bot	6000	H16+p	12-14	11727-31
374	Bot	1000	H15p/16+c Combo	4	11716-17
660	Bot	4000	H16+p	15-16	11721-24
660	Bot	1000	H18/18+/19/19+c Condor	9	11803-03+
684	Bot	1000	M+/H-18c Cal	26	11723+-24
684	Bot	1000	H15/15+/16p Fly	6
685	Bot	500	H16+p	13	11730+-31
685	Bot	2500	H18+c	29	^H11804
709	Bot	1000	H16+/17+p	22	11718+-19
714	Bot	500	J12/14p	16	11731-31+
714	Bot	2200	K14/16+p	55	^M11615+
714	Bot	1000	H15+/16+p	8	11801-01+
714	Bot	1000	K14/15+p	28	^M11616
714	Bot	1000	J13/14+/16P Fly	14	11802-03
737	Bot	1500	H16p	9-10	11720-25
006	Sold	500	H16/17p	17	11713+-14
006	Sold	500	K16 Stdl	255	11718-18+
275	Sold	1000	H17/17+p	9	11731-11800
287	Sold	500	H+18/J-16+c Diag	32	11730-30+
370	Sold	2500	K14p/19c Stgl	100-02	11726-28
560	Sold	2500	H16+p/19+c Stgl	19	11802-02+
684	Sold	1000	J16+ Stdl	217	^M11618
685	Sold	500	H+18/M-16+ Stdl	204
714	Sold	2000	H18+/19c	11	11731-31+
714	Sold	2000	J14p	29	^M11601+/^M11602
830	Sold	1500	H15/15+p	3	^H11715
Local	Trade	500	H15p	4	^H11718+
5 + 2yr.
444	Bot	5000	H15p	6+.7
370	Sold	2000	TuJ107.7p	7
714	Sold	1500	TuJ108p	14	^10807+
714	Sold	3000	TuJ108p	14	^10907+
30yr.
116	Bot	1000	H13p	4	11813-14
287	Bot	500	H15/16/17p Fly	6
560	Bot	1000	M16/23/24c Tree	201	^M11624
560	Bot	500	M14p148	148	11813-14
660	Bot	500	H13/15/17p Fly	14
287	Sold	1000	H18/19/20c Fly	9
660	Sold	750	M08/16p	135	^M11620
660	Sold	1500	11822c  Exp. 1/29	3	11811-12
714	Sold	2000	H22/25c	5