Yesterday a paper was circulating from St Louis Fed President Bullard. The idea in the paper was
to increase the fed funds rate while at the same time lower long rates. The floor saw one of the
busiest days of the year, no doubt as this somewhat radical thought could just make sense.
Starting with the Fed Funds pit up until yesterday quite a bit of attention was focused on the possibility
that the fed could do away with paying 25 basis points on excess reserves which could potentially push
the funds rate towards zero from its current 19 basis point level. A number of trades involved buying 9887 calls.
The Bullard notion saw some pretty good put buying yesterday especially in Jan where 17K traded mostly in
The 9975 strike.
Also a number of yield curve trades were made as noted yesterday mostly of the flattening variety.
More later
See Fed Funds Players from yesterday below.
915
Sold
200
X81Stdl
4
9981/81+
690
Bot
500
F/G81c cal
.25
690
Sold
500
F/G81c cal
.25
370
Bot
6000
F75p
2
F9980-80+
690
Sold
1000
F75p
2
F9980-80+
690
Sold
500
F+/81c/G-81c Cal G-62/68/75p Fly
Even
690
Bot
500
G+62/68/75p Fly G+81c/F-81c Cal
Even
690
Bot
250
F81p
3.25
F9980-80+
690
Sold
650
U/V/X87c Strip
.75
915
Bot
650
U/V/X87c Strip
.75
685
Bot
5000
K93c
.25
K9965+/66
690
Bot
750
H87c
.50
H9974/74+
690
Sold
750
H87c
.50
H9974/74+
690
Sold
2500
K93c
.25
K9965+/66
690
Sold
1000
F81Sldl
6
F9980+/81
690
Bot
1000
F81Sldl
6
F9980+/81
690
Sold
2500
Z/F 68/75p spd cal
.25
690
Bot
2000
Z/F 68/75p spd cal
.25
915
Bot
500
Z/F 68/75p spd cal
.25
915
Bot
750
F62p
1.25
F9980+/81
370
Bot
3000
F81p
3.50/3.75
F9980-80+
915
Sold
500
F81p
3.5
F9980-80+
690
Sold
500
F81p
3.5
F9980-80+
690
Bot
250
H87c
.50
H9975+-76
915
Bot
500
G87c
.50
G9978-78+
685
Sold
500
G87c
.50
G9978-78+
690
Bot
500
F87c
.50
F9980-80+
690
Bot
500
X75/81p1x2
.50
X9980+/81
737
Bot
2000
X75p
1
X9980+/81
287
Bot
6000
G87c
.75
G9978-78+
690
Sold
1750
F68/75/81c fly
1.25
F9980/80+
690
Bot
1750
F68/75/81c fly
1.25
F9980/80+
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