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Wally, I used to work in the grain room. It is definitely more laid back, hours are shorter, but income is not quite as high as the financial traders. One of my buddies clerks in Bean options with some Prime International guys I believe. If not them, I would check with Iowa Grain, very...

Decent amount of weak shorts covering this morning in the long end, locals were long small into the number, but reversed on the highs for size. Paper joined them and started crushing tens about halfway off of the highs, settled in for awhile, then Hardy Brumfield really started pushing early...

Ebo, Sorry didn't get to this earlier. Definitely a firesale in the long end of the curve today. In terms of paper, it was mostly Goldman buying earlier in the day, way up at 113-22 and 113-23, about 5000 between pit and screen (obviously mostly screen). That is correct up near the highs...

No one wants to be short huge size heading into a long weekend with possible terrorist threats. The shorts did not really want to push to the downside. Then we caught a big bid right before that NYC Penn Station threat, aided by massive put selling at the highs forcing option locals to buy a...

Yes, makes perfect sense, thank you for the explanation. What about this huge put trade, against cash?

Have noticed some of the big guys are jockeying around some Ten-year options positions for the last couple weeks, both of them on the opposite side of the spectrum. On the call side, someone (most likely Wells Fargo) was long about 75,000 of the December 110 calls when we were trading at the...

My brother works in Eurodollar options but heard Goldman was selling June/Red June spreads at evens the other day, about 15,000 total, maybe a hedge against something else, but this was when that portion of the curve went inverted. This is just a result of all curves flattening and risk...

Exactly, futures are based off 6% coupons. Sorry, nothing else really insightful to add to this, I'm sure Pabst knows a lot more.

Predictable reactions, how about a weaker than expected Consumer Confidence a couple weeks ago that we proceedingly tanked on because all of the players were short the back end of the curve through steepeners, locals were short heading in, and no one wanted to provide a bid, really tough one to...

The reason Rosenthal doesn't want to switch is because they do massive Autospreading of cash treasuries versus treasury futures. Furthermore, the higher ups like Mr. Collins would stand to make much less money out of this ordeal if their cash group would have to internally develop another order...

I wouldn't take money off the table yet on the ZN side of the spread. There has been size paper selling the last few days in the ten-year (not just stops). Someone sold about 35,000 ten years today on the screen (think Goldman) and was a buyer of two years on the break. Everyone has now...

Exactly, sorry to get a little off topic, but some guys love to know who is doing what, I worked in the grains for a little while and the ADM's, Bunge, Central Soya/Produce's of the world loved to know who was doing what. What is the big paper in the crush doing? What are the commercials in...

Yes, Mike McKenna is filling ALL Goldman orders, while Ardel gets some stuff during roll and CSFB stuff. Mike also does Hardy's stuff when GET is not there, with Tim Farmer (on headset with Hardy) standing next to him and telling him who to take out on the bid or offer. Brian Michael (BMI)...

Yes, plain vanilla transaction are done much better on the screen, for instance the 10yr futures front month, the corresponding cash market is enormous and the amount of global liquidity is enormous. As someone who is able to see the 10yr pit everyday I'll tell you how must guys move a 5000 lot...

Ah the good old days

There are tons of prop trading groups in the CBOT upstairs that trade the schatz/bobl/bund which are traded only on the screen on Eurex. Some of these guys are drinking in Ceres (bottom floor of CBOT) very early some days when the grain guys are having breakfast (because they have bankers hours...

Someone has to provide liquidity to the worldwide futures markets on a daily basis and who better to do that than a bunch of drunk Irish, Italian, and Jewish guys in Chicago. Ceres (in the CBOT) can be quite a busy place for the Eurex shift guys at 9am or so after a busy early morning trading...

Agreed, the low rates across the world have caused everyone to become starved for yield. Look at the Japenese, they are getting about 200 more basis points by buying our bonds than investing in their own bond market. This only adds fuel to the housing-related consumption fire. Essentially...

Bloomberg has the real-time vols but this is obviously not a cheap alternative. Only other suggestion would be to call up your broker and have him ask the pit, but this will annoy them if you are doing it every 10 minutes. Wish I could help more.

It just seems like the paper that was long the bond as of late through flatteners has all of a sudden thrown in the towel and gotten short 30yrs (didn't necessarily mean noone, but the curve guys don't want it). Gross makes a valid point in the Sep Investment Outlook that the better "value"...