Trading Update

As noted yesterday was a very active day on the trading floor – I am very happy for my brothers and sisters still making it happen there. Anyway take a look at the activity listed below.

Today' a short while ago on a block trade 10,000 Sep. 5’s traded 11922.2 vs. 3,500 Sep. 10yr. notes @ 128’14. Compare those levels to where Merril for example, was trading the FOB. The 5yr. note has moved up 5 tics while the 30yr. is up almost a point and a half. Pretty impressive move, we cannot tell unfortunately which way the instigator of the block trade was going – putting on a flattener – taking off a flattener – putting on a steepener – taking off a steepener? Regardless seems the trades put on yesterday that were looking for flattening are working.

Larger trades from yesterday highlighted below.

Yld curve
5yr. Vs. the Ultra - "The fool"
Merril	S	5,000	FVU	11910,7
Merril	B	1,333	ULU   (ultra long bond)	13202
Merril	S	2,500	FVU	11910.7
Merril	B	666	ULU   (ultra long bond)	13130
5yr. Vs. 30yr.     FOB
Merril	S	1,500	FVU	119'17.2
Merril	B	600	USU	126'31
Merril	S	200	FVU	119'17
Merril	B	80	USU	12631
Merril	S	3,300	FVU	11916.5
Merril	B	1,320	USU	126'31
All day 5K	X 2K on theis order
Goldman	S	2,500	FVU	119'08
Goldman	B	1,000	USU	126'12 to 13
2yr. Vs. 10yr. TUT
Goldman	S	700	TUU	10914.2
Goldman	B	392	TYU	12309.5
Goldman	S	2,600	TUU	10914.2
Goldman	B	1,456	TYU	123'10
All day 3,300 X 1,848  makes a 1.78-1 ratio
2yr. Vs. 5yr. TUF
UBS	S	4,395	TUU	10914.2
UBS	B	4,043	FVU	119'11.7 and 12
Makes a	1.08 to 1 ratio
10yr. Vs. 30yr. NOB
Fortis	B	2,800	TYU	123'00
Fortis	S	1,472	USU	126'11
Fortis	B	2,800	TYU	122'29
Fortis	S	1,747	USU	126'10
Note on this one the trade promotes steepening vs. all the others we saw