August Monday
August 17, 2020
–Stock futures pressing higher this morning as the dollar eases, while fixed income is unch’d to small bid. Friday featured new highs in several curve measures, partially spurred by long maturity treasury auctions last week. 2/10 ended at 56.1, up 1 on the day, and 5/30 at 114.4, up 3.6, while the red/gold euro$ pack spread rose 1.75 to 42.25. Of these, 5/30 is closest to the year’s high at 122, with a 20 year bond auction scheduled for this week ($25 billion on Wednesday, just prior to FOMC minutes).
–Today’s news includes Empire Mfg, which has surged from a spike low of -78 to the year’s high at last reading of 17.2. It’s expected at 15 today. TIC data also released.
–The drumbeat of negative news regarding US big cities continues with several articles lowlighting the flight to suburbs in LA, San Fran, Chicago. ZH leads off with “49 people shot in last 72 hours in NYC…” while in Chicago last week, 76 were shot, 11 fatally.
–Once again worth a mention that some 25k EDM’25 were sold on Friday at 9929-30. Average daily volume in that contract is closer to 15k, but on Friday it was 63k with OI +7200. Settled 9926.5 and currently prints 9928.–Sept treasury options expire Friday. TYU0 currently 139-07+ with the 139.25 straddle last at 29/64.
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