Agree with FIFO in the 5yr. It has actually helped the 2yr note, but definitely was hurting the 5yr for a little while. This should be a good change. As for the market today, there was a huge buyer of 30yr bonds in the pit on the close, a little over 10,000 from 111-13 down to 111-10. Remember earlier in the week, there was tons of size trading right around 110-00, bunch of 2000 and 3000 lots. Maybe this guy was puking shorts from those levels????? Will be interesting to see 30yr open interest tomorrow. As for the Goldman straddle sellers, they aren't in terrible shape, the straddle will settle today basically at a scratch to their levels. Bought a lotto ticket myself (second one in past two weeks) with the Nov 107 puts for 2 ticks just in case everyone is underestimating the resilience of the economy. November options expiration tomorrow could be interesting. Smith Barney bought almost 10,000 Nov 107 straddles around 25 yesterday, traded back near 30 or more today.
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Bond rally nearing an end?
- Thread starter gharghur2
- Start date
Mccurto
Let us know about the open interest ... thx!
Let us know about the open interest ... thx!
This didn't stop bonds from rallying again today:
5-year note auction attracts weak demand
By Rex Nutting
Last Update: 1:14 PM ET Oct 26, 2006
WASHINGTON (MarketWatch) -- Demand was weaker than normal for the Treasury's auction of $14 billion in 5-year notes on Thursday. The notes were sold at a high yield of 4.694%, with a weak 2.12 bid-to-cover ratio. Indirect bids totaled 21.7%, down from an average of about 30%. "It looks like the notes were just too rich in this environment, with the weaker dollar providing little incentive as well," said analysts at Action Economics. End of Story
5-year note auction attracts weak demand
By Rex Nutting
Last Update: 1:14 PM ET Oct 26, 2006
WASHINGTON (MarketWatch) -- Demand was weaker than normal for the Treasury's auction of $14 billion in 5-year notes on Thursday. The notes were sold at a high yield of 4.694%, with a weak 2.12 bid-to-cover ratio. Indirect bids totaled 21.7%, down from an average of about 30%. "It looks like the notes were just too rich in this environment, with the weaker dollar providing little incentive as well," said analysts at Action Economics. End of Story
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Lance Carson
As expected the gap up to 111-15 ( 48.50 yield) has been filled this morning.
It's the Lottery, NO ! it's the Chart, NO ! it's Da Bears !....
It's the Lottery, NO ! it's the Chart, NO ! it's Da Bears !....
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Lance Carson
Who else thinks this was a good call...hmmm