Treasury Trading Update.

Massive flight to quality drove Bund yields under 3% and lopped 12 basis points off treasury yields. Also commodity prices fell sharply and metals, oil, lumber look poised for further losses. This absolutely triggered some stop losses for shorts in US treasuries., however the open interest rose by over 70K on very strong volume 1,595,000, so on ne,t a lot of new positions in the market. I truly feel this situation in Europe only has one solution, it is the wrong solution but it seems inevitable. That will be to print your way out. All this talk of fiscal discipline sounds very good, but I believe governments are too large and too corrupt to take the necessary action to remedy the situation in some altruistic fashion. I’m truly out of time here so below are the players from yesterday, I would note one of the more successful traders in this current environment sold June 118 calls and June 115 puts. They did not receive all that much premium but I am fairly confident we do not have much higher to go in terms of price action, and lows will be contained for now. Commodity prices will take a while to start moving higher, and the Fed will have enough evidence at this time to keep things on hold. There is still a chance that discussions of what to do with their bloated balance sheet, will potentially be perceived as somewhat bearish for treasuries. We shall see what leaks out.

10yr.
374	Sold	700	M14/19 STG	10	11630/31
560	Sold	1000	M 17C	42	11630+/31
560	Sold	2000	M17C	42	11630
350	Sold	2000	-M15/16P SPD/+M 18/19C SPD	1	11700+/01
287	Bot	2000	N 17C	34	11701/01+
685	Bot	500	+M15/16P SPD/-M 18+/19+CSPD	2/3	M11704/04+
660	Sold	2000	M 15+/18+ COMBO	P EVEN	11704+/05
287	Sold	3000	M18C	21/22	11705/05+
685	Bot	500	M 16/16+P SPD	10	11630+
287	Bot	500	M14/16P1X2	12	11701+/02
714	Bot	2000	M 14P	5	11700+/01
370	Sold	7000	M15/18 STG	32/29	11703/11+
660	Bot	1000	M17+^	125	11710
092	Bot	500	M15/16P SPD	10	11713+/14
197	Bot	500	Q14P	36	11724/24+
199	Bot	500	M15+/16+P SPD	11	11720+/21
560	Bot	2000	M 17C	107	11720/20+
685	Bot	500	M16/17P SPD	15	11721/21+
660	Bot	1000	M 17+^	129	11718
197	Bot	500	M120C	4	11717+/18
287	Sold	1000	M15/16P SPD VSM18/19 C SPD	12	11717/18
660	Bot	1500	M16+/17 P STUPID	55	11717
690	Bot	800	M16+P	21	11722/22+
690	Bot	750	M 17P	30	11721/22
685	Sold	-2K/+1K	-M17+^/+U16+^	+129/-319	11720/11609
690	Sold	1000	M 17+C	46/45	11718/19
690	Sold	1000	M18C	31	11718+/19
685	Sold	500	M17+/18+C 1X2	7	11718/18+
660	Bot	3000	M17P	33	11716+
685	Sold	850	M 17+^	131	11719+/20
30yr.
444	Bot	2500	M 17^	216	11725
830	Sold	2500	M 18P	57/56	11816
690	Bot	500	FLEX 11800C EXP TODAY	3	11717/18
660	Sold	2000	FLEX 11800C EXP TODAY	3/4
660	Bot	1000	N 11/13/15P FLY	13	11812/13
2 + 5yr.
287	Sold	1000	U 116C	24
714	Sold	1000	M 115+C	24
690	Sold	500	TU M 108+^	27
Fed Fund
287	Bot	1500	+Q 75P /-U62P	.75
825	Sold	500	-Q 75P/+U62P;	.75
714	Bot	7000	F 62/75 c spd	6.25	F9946+/47
690	Sold	1000	F 62/75 c spd	6.25	F9946+/47
915	Sold	1000	F 62/75 c spd	6.25	F9946+/47
825	Sold	250	F 62/75 c spd	6.25	F9946+/47
690	Sold	2000	-Z /+F 62/68 C SPD CAL	.25
915	Bot	1000	+Z/-F 62/68 C SPD CAL	.25
287	Bot	750	N 62/75 P SPD	1.50	N9975+/76
690	Bot	1000	K/M 81C STUPID	1
690	Sold	900	Z/F68/75CSPD CAL WITH U 68/75/81pFLY	2.75
915	Bot	900	z/F68/75CSPD CAL WITH U 68/75/81pFLY	2.75
690	Bot	1000	Q/U 75C CAL WITH Z62/68/75 P FLY	.75
690	Sold	1000	Q/U 75C CAL WITH Z62/68/75 P FLY	.75
287	Sold	500	K 75/81 P SPD	2.50	K9978/78+
690	Bot	300	K 75/81 P SPD	2.50	K9978/78+
689	Bot	500	M 68P	.75	M9976+/77
006	Sold	500	M 68P	.75	M9976+/77
287	Bot	500	K 62P	.25	K9978/78+