Cash-Secured Put On TLT

posted in: Credit, Derivatives, Economy, Technicals | 0

TLT, the iShares 20+ Year Treasury Bond Fund, declined 16 percent between the all-time intra-day high of 137.09 on January 30 and the low of 115.26 last Wednesday. It is as if the bond market globally has been awakened from … Continued

Peek Into Future Through Futures

The following are futures positions of non-commercials as of June 9, 2015.  Change is week-over-week. 10-year note: Last week, the IMF urged the Fed to delay a rate hike until 2016.  This week, the World Bank said the same thing. … Continued

Despite weak macro backdrop, markets pricing in higher inflation!

posted in: Credit, Currency, Economy, Technicals | 0

For only 4th time in six-plus decades, U.S. GDP price deflator goes negative Macro data weaker than expected this week, but rates come under upward pressure Dollar plays crucial role in inflation outlook, breaks support, could be headed toward 92 … Continued

Peek into future through futures

The following are futures positions of non-commercials as of April 21, 2015.  Change is week-over-week. 10-year note: Are bond vigilantes expecting a hawkish tone from the FOMC next week?  The latter meets on 28-29.  For the most part, macro data … Continued

Fed craves higher inflation yet pays interest on reserves!

posted in: Credit, Economy | 0

Government’s various measures of inflation continue to elude Fed’s 2% target U.S. banks’ excess reserves have followed QE higher, and are sitting idle By paying interest on reserves, Fed encourages banks to sit on them The Federal Reserve wants inflation.  … Continued

Peek into future through futures

The following are futures positions of non-commercials as of April 7, 2015.  Change is week-over-week. 10-year note: Interesting times, indeed!  Mexico this week issued a 100-year bond denominated in euros.  This is not the first time that nation has tapped … Continued

Bill Dudley’s Monday comments, shot across bow of dollar rally?

posted in: Currency, Economy | 0

Exports’ share in U.S. GDP not as high as industrialized peers but increasingly important Fed’s rate-hike-this-year message significant tailwind for greenback’s relentless rally Fed officials not enamored of buck surge; how long before they start jawboning? There is a wide … Continued

Peek into future through futures

The following are futures positions of non-commercials as of March 31, 2015.  Change is week-over-week. 10-year note: At some point, the streak had to end.  For 12 months to February, U.S. non-farm payroll grew 200k-plus month-over-month.  Consensus was for that … Continued

Peer into future through futures

The following are futures positions of non-commercials as of March 24, 2015.  Change is week-over-week. 10-year note: After what these traders heard out of the FOMC last week, they decided to step on the accelerator.  Net shorts went up 67 … Continued