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Yeah, I run that squawk box, it was pretty fun quoting that stuff today, and being right next to it when it happened, although not fun for the EDF Man guy that has to pay for the error. Oh well, thats the markets. Mike

Talk about one ****ed up close today. Option locals sold nearly 5000 futures in the last half hour from 26 down to 25 (most likely Brumfield buying off of them on the screen). Then EDF Man comes in on the close and decides to buy 3000 at 26, OOPS, was supposed to sell 3000 at 26, so now he...

My desk on the floor is literally right next to the 10yr futures pit at the CBOT (I run a squawk box) so I can see all of the huge desks and have an unobstructed view to Hardy Brumfield's pit trader, who is more often than not on the other side of those huge trades. Has been some flashes of...

It was super thin in there early this morning, then someone came in and bought about 3000 up near the highs on the screen (most likely Brumfield sold it to him), then traded gradually lower to that 4.127% cash yield, which has been good resistance in yield last month or so, hit some HUGE stops...

Not sure if this explains anything but there are about 10,000 Dec 06 9575 straddles someone has on against 9591 in the futures, so that might have something to do with mispricing in the futures. This is a pretty big amount of straddles for the red months and was put on early this year (about 30...

Correction on my above post, Gross was SHORT US ten-year versus LONG Eurex Bund. They tend to put on this position in chunks. Last time they did the unwind most of it was in one day, and it got quite messy on the 10yr side when they started moving about 100,000 contracts in one hour's time...

Bill Gross was a huge fan of that US Ten-year note vs. German Bund spread (in terms of cash yield basis). I believe he put it on (short US ten-year futures versus short Eurex Bund) late last year when the spread was only +25 basis points (US cash yield over Bund yield), and now it is somewhere...

How did this scenario play out exactly? I usually get to see the big stuff go through in the 10-yr notes (pit and screen) and how big paper works orders. Do they do clips of 500 or 1000, was Rotter bid for 10,000 and then paper sold it to him? Did it trade down near the lows to 80, then all...

A lot of CBOT floor guys use Market Profile to trade the interest rate products. Other than that there aren't a ton of guys using technical analysis, although some use hardcore technician on Mike Riordan (Focus Trading or something like that, think he has a website). For the most part you...

If you want to trade the US Treasury options at this point in time using the pit is still the best way. The biggest locals will quote any market fairly tight no matter how complex or big the order. Look at the open interest in the CBOT options compared to Eurex options. I believe this is...

If you have pit-access through your broker I would recommend using that venue during US market hours (7:20am-2:00pm). There are tons of locals down on the CBOT floor that provide huge liquidity during those hours and will hit your bid or lift your offer, even on low delta stuff, if you are...

Sep is the front month now, but even today Sep was only showing 300-500 up later this afternoon. Biggest local took off early today so that thinned out the screen a little bit. When Brumfield was active earlier in the morning he was showing some size offers on the way down in the T-notes. He...

Yeah, we figured on the floor it was one of their prop traders and not a customer. His position was essentially long the 111-113 guts (long 113 puts in the money and long 111 calls in the money) and short the 112 straddle. He did this in the Jan expiration 40,000 by 80,000 by 40,000. He did...

The numbers I heard were from anywhere between 150K and 250K ten year notes that this guy was short. Yes, it is a huge position, and heard that it cost him a couple hundred million to unwind as it went against him. Relatively speaking though, the same JP Morgan guy did 1x2's in the Ten year...

The death spikes are usually when someone comes in to move about a 1000 plus in extreme market conditions, like the first order to come in after a number. Essentially, if locals know the number is extremely bullish, but everyone wants to buy it, they will back off a little bit. Since they are...

Rumor on the CBOT floor that one of JP's big prop traders was short on the order of 200K Ten-years into the whole rally last couple months. Slowly covered them but cost couple hundred million. Was also short Eurodollars. This same guy put on a bunch of 1x2's in the Jan, Feb, and March option...

Check your PM.

The reason the spread has been having such great swings is because there has been somewhat of a squeeze in the June Ten-year note contract. The cheapest to deliver cash Ten-year against the June contract is the 4 5/8% of February 2012 note. This particular note is in extremely short supply...

Charlie D was definitely the FIRST biggest 30-year bond local. He made the pit what it was in the late 1990's. I would say he definitely traded the largest % of the volume during his hey-day, which was early 1980's to a couple weeks before his death in 1991. He was a calendar spreader in the...

Biggest ten year pit and screen local at the moment is Hardy Brumfield (Harris' bro). I would hope Harris is not trading anymore with fiduciary responsibilities at TT (at one point Harris was largest in pit and screen till he became involved more at TT). A good sized position for Hardy on...