In the movie True Grit the little lady has a line that goes something like this “If this is what passes for Grit in Texas, I’m shocked – in Broward county we call it “something else”. In today’s WSJ apparently there is an article that states “A Fannie Mae for Europe”. The European Financial Stability Facility is to be enlarged in a manner that will allow it to exacerbate – not ameliorate the systemic risk in the European economy. They take shit - repackage it and brand it triple A – how fucking stupid are we as a planet – answer - quite – for the sheeples will wind up paying just as we are paying here for the largesse of the ruling class and the debt bingers in this country. Now don’t get me too wrong – we are in this together and there is blame to go around from those who over reached and got way over their heads in debt. But for bankers to reap mega profits on this is absolutely wrong and only makes the initial problem worse. Is there any light at the end of this tunnel – probably if you have grit – but look out for more – you know what.
Here in Chicago still seeing some bullish plays on the long end – technicals do agree with direction for now as noted yesterday. Missed a good trade the other day – may be reloading shortly – call if interested.
Larger flows from a.m. session listed below:
| 7/20/2011 | |||||
| Paper | B | 10,000 | EDQ 9962c | 4.5 | 9961.5/62 |
| CCM | B | 5,000 | EDV/EDZ 9962 c calendar | 2.5 | 9950/50.6 area |
| Paper | B | 17,000 | EDZ9962c vs 9900/9937 p sprd | .5 call over | 9950/50.5 |
| Fed Fund opts | |||||
| Paper | S | 500 | FFV9981c | 7 | 9988.5/89 |
| Paper | B | 250 | FFZ-FFF-FFG 9987/9993 c sstrip | 6 | N/A |
| 10yr. Opts | |||||
| CSFB | B | 10,000 | TYQ125c | 0.13 | ^12424 and 23.5 |
| Merri | S | 1,000 | TYU126c | 0.4 | 12421.5/22 |
| Paper | S | 750 | TYU124.5 strad | 2.27 | 12421/21.5 |
| Paper | B | 500 | TYQ/U 124.5 strad calendar | 1.50 and 1.51 | ^12422 |
| Barclay | S | 8,500 | TYQ124p | 0.05 | 12424/25 |
| Barclay | S | 500 | TYQ124p | 0.04 | 12425/26 |
| They paid .04 and .05 for 10K yesterday so just liquidating | |||||
| Paper | S | 800 | TYU125 strad | 2.26 | 12426/26.5 |
| paper | B | 1,000 | TYQ120.5 p | cab 5 ($5.00_ | 12425/26 |
| paper | B | 1,100 | TYQ125/126 c 1X2 | 0.08 | 12423/24 |
| CCM | B | 500 | TYQ125c | 0.14 | ^12416 |
| Paper | B | 700 | TYU124.5/ 125 strad spread | .01 - 124.5 over | 12420/20.5 |
| Paper | B | 1,000 | TYQ125c | 0.09 | 12419/19.5 |
| 30yr. Opts | |||||
| Paper | B | 3,500 | USU 128/131 c spread | 0.47 | ^12613 |
| Same player that loaded up on 10K of the 128/129 c spreads | |||||
| Paper | S | 2,000 | USU 123/128 combo's | .30 call over | ^12613 |
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