Bond rally nearing an end?

At least one of the biggies got hurt for a change today. I think WAMCO had sold around 20,000 June 108 calls on the recent uptick from around 27 to 32 ticks. Today they bought back 20,000 calls at 36 and 37 ticks vs. futures 107-07 and 06.5. Oops, that is too bad. Goldman prop now seems to be getting long the June 107 strike that they were previously short around 20,000 on. Goldman futures desk got a customer long last week around 106-20 to 22 area (against the 200-day moving average) and those are still looking quite good, my guess is around 30,000 to 50,000 outright longs.
 
Quote from sharp10:

110^08 is the strongest. IF that fails look for 109^27.

110^16 smaller support that coincides with support in the 10s at 106'300
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Now that 109^27 has been broken to the down side and re-entered, what's your target to the upside?

jim
 
Quote from mcurto:

At least one of the biggies got hurt for a change today. I think WAMCO had sold around 20,000 June 108 calls on the recent uptick from around 27 to 32 ticks. Today they bought back 20,000 calls at 36 and 37 ticks vs. futures 107-07 and 06.5. Oops, that is too bad. Goldman prop now seems to be getting long the June 107 strike that they were previously short around 20,000 on. Goldman futures desk got a customer long last week around 106-20 to 22 area (against the 200-day moving average) and those are still looking quite good, my guess is around 30,000 to 50,000 outright longs.
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Hi mcurto,

What happened today? Was that merely huge short covering? Is the market net short or long now?

Thanks and always appreciate your input.

jim
 
Seems like a pretty silly reaction by the bond market. West of the Hudson River, core CPI is well above 2% and economic growth is doing fine. Should Big Ben & Co. cut rates so Wall St. can do more $30 bil. LBOs? If my 7 figure bonus check depended on advisory/bridge financing revenue, I would shout “CUT 50bp” from the highest mountain.

Why are 10s back under 4.50?
 
Quote from JohnL111:

Seems like a pretty silly reaction by the bond market. West of the Hudson River, core CPI is well above 2% and economic growth is doing fine. Should Big Ben & Co. cut rates so Wall St. can do more $30 bil. LBOs? If my 7 figure bonus check depended on advisory/bridge financing revenue, I would shout “CUT 50bp” from the highest mountain.

Why are 10s back under 4.50?
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Because the freakin 'spoos are imploding along with the rest of the emerging markets. Flight to safety.

I don't expect any inflation talk tomorrow, that's for sure.
 
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