The CRB index did touch the 280 level yesterday getting close to recent highs made earlier this month. However there were important reports on planting intentions after the close yesterday and currently grain prices have pulled back significantly. Oil is also trading lower around $83.25 per barrel. Palladium is off this morning as well. It therefore looks like the CRB will be pulling back today and not pushing to new highs. There may be some pressure on prices as the market has fresh supply to absorb this week, and of course many will
be waiting for the FOMC pronouncement tomorrow. The Fed needs to address divesting its balance sheet of MBS, and there seems to be more and more dissenters, which seemed to trigger a number of trades in Sep. Eurodollars yesterday. UBS loaded up on June 115.5 puts and 115 puts yesterday, could be for a Mortgage servicer, but did not get much other color on the trade. For now I am assuming they were new positions, (unfortunately the CME web page was missing for the 10yr. puts this a.m.). There were also large trades in Sep. Eurodollar calls and preliminary reports are not showing those ither, very curious, I will be looking into it later today. Will expect subdued price action today, currently prices trading 116’27 area.
10yr. and Fed Fund options flows from Monday below:
10yr.
287
Sold
500
M 17+C
22
11622/23
197
Bot
500
U 14/17 STG
200
11622/22+
660
Bot
2000
M 14P
5
11622/22+
197
Sold
500
U 13+/17 STG
151
11622/23
370
Sold
5000
M15+/17 STG
53/52/51
11613/26
660
Sold
700
U 11/19 STG
48
11623/23+
197
Bot
20000
M 15+P
18/19
11621/22
560
Sold
3000
U 11/19 STG
48
11621/22
197
Bot
15000
M 15P
13/14
11621+/22
685
Sold
3500
M17C
35
11621+
560
Bot
3000
+N 13P/-U10P
6
11622/23
685
Sold
500
M 15+P
19
11622+
370
Sold
500
M17C
33
11619+
830
Sold
1000
M 16+^
126
11620
714
Sold
1000
N 13+P
31
11507
Fed Fund
287
Bot
200
F 68/75/81 c fly
2
287
Bot
800
Z 75C
1.25
287
Bot
1000
X 75C
1.25
690
Bot
1500
Q75/U 68P STUPID
9
690
Bot
300
U/Z 68C CAL
1
690
Bot
2500
U/X 75C CAL
.50
690
Bot
200
V+/X-75C cAL
.25
714
Bot
200
X 00/25/50 p fly
3
714
Bot
5000
F62/68c
3
825
Bot
500
V+/Z-75C cAL
.25
915
Bot
500
X 00/25/50 p fly
3
370
Sold
1225
K 75/81 P SPD
2.50
690
Sold
200
F 68/75/81 c fly
2
690
Sold
1500
F62/68c
3
690
Sold
1500
U/X 75C CAL
.50
690
Sold
1000
V 75C
1.50
690
Sold
250
Z/X 62/68/75 PFLY CAL
EVEN
714
Sold
2000
Q75/U 68P STUPID
9
915
Sold
1500
F62/68c
3
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