Sources indicate oil rallying on speculation of an Israeli air strike on Iran in the wake of the US’s take down of Bin Laden. Recently we are seeing a bid come into treasuries as well. This is quite interesting in my opinion combined with concerns that there could be even more instability via retribution attempts the short lived dip in oil prices and exit from risk related trades was short lived indeed.
10yr. futures went out firm Friday and currently have taken out overnight highs trading 12110 at the time of this writing. Floor activity has been very quiet so far this morning, but may see activity pick up as risk situation seems to be heating up. I would say “risk on” trade is the word for now.
Charts below do indicate fresh buying:
Larger flows from a.m. session listed below.
| 5/2/2011 | |||||
| Paper | S | 500 | EOU/EOZ 9937 c spread . | .5 EOU over | N/A |
| TJM | S | 2,000 | EOU 9750/9800/9850 p fly | 5 | 9883/83.5 |
| Paper | B | 3,000 | EDZ12 9825/9875/9925 c fly | 8 | 9851.5/52 |
| Fed fund opts | |||||
| Paper | S | 500 | FFZ9943/9950/9956 p fly | 0.25 | 9978/78.5 |
| Paper | S | 500 | FFZ 9975/9987 p 1X2 | 1.25 pieces over | 9978/78.5 |
| Mann | S | 1,000 | FFZ 9975/9987 p 1X2 | 1.25 pieces over | 9978/78.5 |
| 10yr. Opts | |||||
| TJM | B | 2,200 | TYWk1 (exp this fri) 120 put | 0.07 | 12101.5 area |
| Paper | S | 1,500 | TYM120/122 combo | .01 call over | 12103/03.5 |
| Paper | S | 500 | TYM118.5/120.5 combo | .13 call over | 12102/02.5 |
| 5yr. Opts | |||||
| Paper | S | 700 | FVM118.5 strad | 0.54 | N/A |
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