Yesterday we discussed the lovely story of the Portuguesse Bull what got his nuts cut off. Life often imitates such fairy tales. For today a gentlemen by the scholarly name of Socrates who happens to be the Prime Minister of Portugal will likely be booted out of office for having the audacity to propose some austerity measures.
This a.m. we are hearing the same sort of rhetoric – sort of - out of the UK. Not hearing so much about austerity measures but I did see the that the vote to leave rates unchanged at the last meeting passed 6 – 3. Furthermore Osborne cut his out look for UK GDP from 2.1% to 1.7. And this is the deal, you see it is just too damn hard to impose rate hikes and austerity measures when growth, which is mostly contrived through money printing and easy credit, is threatened by nuclear disasters and severe unrest in the middle east. The US lost a $31 million jet the other day and the 60 cruize missles have sailed out the window at a cost of around $240 mln., and were just getting warmed up. The cost of the Japanese bail out not just in the hundreds of billions in terms of dollar costs, but of other economic related costs, food, supplies, health, all of which are highly contagious globally.
So it is quite possible US fixed income could start another decent leg up. Perhaps once the buybacks – today’s POMO will provide the catalyst in the next 20 minutes or so – currently 9:50 a.m.c.s.t.
Will be out tomorrow – back on Fri.
Larger players listed below from a.m. session.
| 3/23/2011 | ||||||
| Paper | B | 2,000 | EDM96/97 c spread | 4.7 | 9962.5/63 | |
| Paper | B | 7,000 | EDM 9937/EDU 9925 p stupid | 6.5 | N/A | |
| Paper | B | 2,000 | EDM1 9950 p | 2.75 | 9962/62.5 | |
| TJM | S | 500 | EOJ86/88p1X2 w/ 87/90 p1X2 | 8 | 9894 area | |
| Paper | B | 2,000 | EDZ90/92 p spread | 4.5 | 9943 area | |
| Paper | S | 4,000 | EOU 90/92 c 1X2 | 5.5 | 9862.5 area | |
| New Edge | S | 20,000 | EOM 90/92 c 1X2 | 8 | 9895.5 area | |
| New Edge | B | 10,000 | EOM 9800/9850 p1X2 | 3 | 9895/95.5 | |
| Note yesterday they sold 20K of these @ 3 ??? | ||||||
| Paper | S | 500 | EDH13 9800 strad | 125 | 9804 area | |
| Paper | S | 1,000 | EDH12 9925 strad | 48.5 and 48.5 | 9923.5/24 | |
| Fed fund opts | ||||||
| Paper | B | 1,000 | FFK 9968p | 0.25 | 9985.5/86 | |
| Paper | B | 500 | FFN9968/9987 combo | even puts | 9984/84.5 | |
| Merril | B | 1,500 | FFQ81/93 p spread | 9 | 9982/82.5 | |
| 10yr. Opts | ||||||
| Paper | B | 2,000 | TYM 117/119 p spread | 0.31 | 12011 to 11.5 | |
| Paper | S | 1,000 | TYJ120.5/121 c spread | 0.09 | ^12011 18% | |
| Paper | S | 4,000 | TYK 119 put | 0.29 | 12010.5 | |
| Paper | S | 1,000 | TYK120.5 strad | 2 | ^12012 | |
| Paper | S | 1,000 | TYK120.5 strad | 1.63 | 12009/09.5 | |
| Paper | S | 750 | TYK119.5 c | 1.29 | ^12010.5 | |
| Paper | B | 1,000 | TYM113.5 put | 0.05 | 12010.5/11 | |
| Swiss B | S | 750 | TYK120.5 strad | 1.63 | ^12010 | |
| JP Morg | B | 1,000 | TYK114p | 0.01 | 12012/12.5 | |
| RJO | S | 2,000 | TYK120.5/122.5 c1X2 | 0.23 | ^12012 | |
| New Edge | S | 2,000 | TYK 118/122.5 strangle | 0.31 | 12010/10.5 | |
| Paper | S | 500 | TYM120.5/122.5 c1X2 | 0.12 | 12012 | |
| Smith B | B | 2,000 | TYK119/119.5/120.5 p ladder | even | 12012/12.5 | |
| Paper | S | 4,000 | TYK119 put | 0.28 | 12012.5 area | |
| 5yr. Opts | ||||||
| Paper | S | 1,000 | FVK 116/117/118 p fly | 0.14 | 11723.5 | |
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