Treasury Trading Update.

US dollar index looks to be turning lower. This will help sustain a turn around in a number of commodities that look to be reversing downward momentum to up. Since commodities are priced in dollars they become more expensive (prices rise) as the dollar weakens and vice versa. This back ground means there will be upward pressure on treasury yields in the near term. See charts below.

 

 

Flows were on the bearish side in Treasury Options yesterday:

10yr.
104	Bot	1000	N13/15p	2	12010/10+
287	Bot	2000	N17/18+p	16	12010/10+
287	Bot	500	N18p	23	12001/01+
287	Bot	1000	N18/19c	45	11925/25+
444	Bot	1000	N16/17p	6	12001/01+
685	Bot	500	Q19+p	112	12002/03
830	Bot	1250	U22c	63	U12002
Local	Bot	500	N/U20c cal	47	11929/29+
444	Sold	500	U19c	222	U12000
560	Sold	600	N17/18+p	19	11929/29+
685	Sold	500	N20p	58	12009/09+
685	Sold	750	U20Stdl	338	122002/03
685	Sold	500	N20Stdl	205	U11929
714	Sold	5000	N23+c	10	12001+/02
Open interest report shows above trade is new position.
830	Sold	2000	Q19/22Stg	146	12012/12+
Local	Sold	500	N/U22c cal	39	12001+/02
30yr.
560	Bot	1000	N18p	15	12317/18
560	Bot	2000	N27c	44	12320
560	Bot	2000	U+22p/-10/12pstupid	208	12302/03
560	Bot	500	N10/12p	1	12228/29
660	Sold	2500	Flex124c exp today	5/4/3	12308/09
2 + 5yr.
287	Bot	5000	TU U 108.5p	10.5/11
287	Sold	2000	TU U108.2/108.7pspd vsU109.5c	1
Above trades are all new positions for Man. On the package they sold the 109.5
calls and bought the but spread for a 1 tick credit.
Fed Fund
287	Bot	2000	M75p	.50	M9978.25/50
690	Bot	500	M81c	.25	M9978.25/50
915	Bot	750	N75/81/87cfly with M68/75pspd	2.75
006	Sold	1000	N75/81/87cfly with M68/75pspd	2.75
685	Sold	500	Q81c	.50	Q9976+/77
690	Sold	250	M75p	.50	M9978.25/50
714	Sold	1000	M75/81Stg	.75	M9978.25/50
915	Sold	1000	M75p	.50	M9978.25/50