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Daddyeaux, Agreed on the moves nowadays, nothing compared to the 1980's, which I wish I was part of from the standpoint of a local trader. Now it is more or less a game of chess and positioning around the big players like PIMCO and various bank prop desks, too much liquidity at this point...

Daddyeaux, If you like the longer-term stuff buy the FOB. PIMCO currently has this position on and is continuing to add to it as we hit a pretty nice flattening move. It is as if PIMCO has this rubberband that can stretch to infinity, they will never blow up no matter how many steepeners...

Yes, both bearish positions vs. long futures at delta-neutral levels, covered put spread and covered ITM puts. When they do covered stuff it is always delta-neutral, very rarely have seen the GS guys do 1:1 when covered. The 106 puts are June so expire on Friday. Sounds like they are...

Riskarb, Two Goldman prop options plays today: buying 10,000 Sep 103-105 Put spreads vs. 105-22.5 and 23.5 in Sep futures and buying 5,000 June 106 puts (ITM) vs. 105-30 in the futures. What do you think? Obviously the options plays alone are bearish. What do you think the core position is...

I think every hedge fund and their mother had the short US Treasuries vs. long Gold trade on and we are seeing the aftermath of that trade this whole week. Heard rumblings of some real money buying in the very long end of the US curve, but noticeably absent from the belly of the curve (5Y and...

JohnL, A few guys were talking about the flight-to-quality from the EM's earlier this week, but nothing on that front today really. I can tell you a lot of fast money hedge funds were active today and were behind the bid in the 30yr from the opening bell (with one fund out of NYC buying...

Advantage Futures bought almost 10,000 5yr notes in the pit today from 25 the whole way up to 29.5. Think it was maybe Citadel buying them, not sure though. Interesting rally today, the longs have been very nice the past few days, BUT the dealers remain fairly cautious of the market internals...

Brumfield big seller up here to JP Morgan in tens at 00.5, about 4000 total traded in pit, then Goldman came in a bit later and sold 1000 as well. Lots of guys running this morning, was a fun bid, but starting to wane a little bit.

The Japs are still long 10,000 or so of the June 106 puts in the 30yr and maybe will roll them in the coming weeks. Other than that they have no position in any 5yr or 10yr puts. Riskarb, another size NOB options play today on the close, sold 10,000 Sep 103 puts in the 10yr versus buying 6,000...

Very noticeably absent in the whole CBOT complex (the Japs put buying that is). They have done nothing over the last month or so.

Duestche Bank 7000 total, and Carr has also bought 5000 on the day, I bet same guy as Goldman yesterday.

Something fishy up in the 2yr pit, Duestche Bank has paid 20.75 up to 21 on 5000, 2000 more holding on the 21 bid. Also hearing that the big order on the screen was Goldman yesterday and maybe real.

Looking at repo rates ahead of the 10yr auction no one is really squeezing anyone else and the real money accounts for the most part are still sitting on the sidelines in the long end, fairly defensive stance. Although this market seems to be forming a bottom in the long end I would still be...

All the big boys still short the 2yr (since about 4.68% in cash) vs. every once in awhile getting long the 10yr to leg into a flattener at advantageous levels, or at least that is what Greenwich Capital Markets has been doing. Speaking of the 2yr futures, did anyone watch that little fat finger...

Riskarb, So this is a play that the movements in the NOB spread will become more normalized (i.e. that we flatten the NOB in an uptrade and steepen it in a downtrade)? The NOB spread has flattened a pretty good deal in the whole down move of 2006, rather than steepening as most would think...

2 day total on this NOB strangle package is 27,000 x 16,000, pretty much same levels. This NOB is gonna make a big move soon, all of this seems to be pointing toward a steepening of the spread.

We were very dead yesterday, although seems like someone at Goldman is short and continues to sit on the offer around 105-08 give or take a few ticks in the 10yr, probably a play ahead of an expected weak 3yr auction. Only thing of notice yesterday in options land was a big NOB options play...

Abby Cohen of Goldman was out with the 4.30% 10yr cash yield by the end of the year, curve would be massively inverted under that scenario. Look out, Goldman is getting short into their buy recommendation, big surprise there. They called 1325 in Spooz last time around and we preceded to tank...

The crazies were out today in Fed Fund options, we think a Duestche Bank london trader bought about 65,000 of the Fed Fund May 9500 puts, can you say "Fed raises rates by 50 bps at the next meeting." Only a quarter tick, so didn't spend too much of the banks money, about half a mil. Even if we...

Can't remember who was talking about the options NOB, but they are back again today, sold 8,800 Sep 02 puts in ten year and bought 5,300 Sep 01 puts in 30yr, same guy, just a little different play and weighted.