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Gelber might be doing something like this or it might be something more like a FICC division (like Goldman, Lehman, Citi, etc).

If you trade significant electronic volume in any of the CME or CBOT contracts it is worth leasing a seat (even if you won't be trading on the floor) because you will receive member exchange fees and member clearing firm rates. This will cut your cost significantly. I would say it is worth it...

Goldman selling vol in size. About 5000 March straddles and another 5000 Feb straddles just now. Their position is short about 75,000 straddles total at the 108, 109, and 110 strikes. They want to fade any vol bid on rallies, essentially putting them kind of short outright down to mid 107...

Two totally different ball games. 10yr trades enormous size and has LOTS of paper. You can very easily get run over by a 5000-7000 lot out of nowhere that takes out 2 or 3 bids/offers at once within a minute. That being said, when there is no paper in the 10yr you will run into a local that...

Don't trade when he is active, if whoever it is trades say 10% of bund volume that leaves about 900,000 contracts a day trading that he isn't part of. Learn to identify these spots where the guy is active and just sit on your hands. Sometimes the best trade is to not trade. Have learned this...

Pabst, Couldn't agree with you more buddy. A broker with a desk right next to me enters orders on the screen on behalf of some of the who's who of hedge funds in New York City for Treasury futures. As much money as they manage they are still novices when it comes to electronic execution...

Dealers seemed to have that ISM services number about an hour or so before it was released. Goldman sold 1000 in the 10yr right on the high of the day at 109-20.5 in the pit right after the weak ULC and Productivity numbers. Pretty much straight down to 109-14 from there with size sellers on...

I watch it trade in front of me on the floor. I run a squawk box from a desk pretty much in the absolute middle of the floor, so pretty good information flows. I pay attention all day and try to decipher and anticipate flows rather than throw spitballs like most my colleagues (although the...

Friday saw a monster steepening in the Treasury curve and about 10 basis points on the week for the 2yr vs. 10yr spread. Mid-2007 Eurodollars pricing 2 cuts may be a bit crazy, remember the Fed HAS to keep their tough rhetoric on inflation with PCE still running above their comfort level in...

Laurentc, Did either the 5yr basis or 30yr basis flatten/steepen during this time period (did cash vs. futures relationships reprice)? That should explain why your actual futures profit vs. the theoretical futures profit is different.

All dips will be met by dip buyers (hedge funds, real money accounts, Asians) until the data says otherwise. I definitely agree we are priced for bad news, but it is not worth selling into any downtick based on that alone, we need hard fact that things are better than the 500,000+ net long base...

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Ya, it is a standard practice for big locals in all bond markets, especially long end contracts like the Bund, US 10yr and 30yr. Just a way to try to catch all the smaller locals off guard when there isn't any paper around. Although it would be Hardy Brumfield, pretty sure Harris is doing very...

In that specific situation the guy obviously wasn't hit on 100,000 futures (was just locking up the market showing that size on both bid and offer where he pinned it) and all the major players knew what was going on so didn't touch it. As for say when they are hedging their straddle in...

Ya, but when you are short gamma in the form of short straddles you have to hedge by buying futures on the upside at your pain point and likewise doing the opposite on the downside. I do understand the point you are trying to make. As it gets to say the DAY of expiration they will play games...

They don't protect their position. If need be they roll it into a different position or buy back month straddles against their short front-month position. In the end, they understand how to use their knowledge of customer flows and let the market pin itself to that strike.

This is info I gathered by myself throughout the day. I am located on the floor of the Chicago Board of Trade in the financial room. Pretty good flows from the 10yr options and various other brokers I talk to throughout the day with different connections to dealer desks.

Market began to sell-off on rumors of a very strong Philly Fed this morning (was rumored by New York to be around 11.0). Of course that didn't come to fruition. Either way the 10yr traded nearly 2 million contracts from 108-02 to 107-30 over the past week leading into today. Obviously a large...

No, rate-lock selling always before corporate issuance, supposedly 20 billion for next week. But the majority of these dealers were probably locked in by using swaps, so I guess that is why Treasuries never got hit hard today while swaps widened almost a full basis point this morning. Watch...

Typical short squeeze ahead of what should be some good-sized rate-lock selling this afternoon.