5% and 20 bps. Just a normal week
November 3, 2023
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–Big flattener yesterday. Red pack (second year starting with SFRZ4) actually was lower on the day -0.375 at 9577.875, greens +5.375 to 9601.25, blues +10.625 to 9593.875, and golds +12.375 to 9577.25. Reds and golds are identically priced ~4.25% while greens and blues are closer to 4%.
–Since Monday SFRH4 is +3 to 9468.5, while SFRH7 is +21 to 9596.0. A lot of ~20 bp moves in longer maturities, for example tens from 4.856% on Monday to 4.667% yesterday.
–NFP today expected +180k with Avg Hourly Earnings yoy 4.0% from 4.2%.
–On Friday ESZ3 settled 4137.75 and yesterday at 4335.75, a gain of 198 points, near 5%.
In the ‘bad news is good news’ department, here are a couple of headlines this morning:
RTRS: Hamburg skyscraper construction halted in grim sign for German property sector
RTRS: Maersk to cut at least 10000 jobs as shipping boom unravels
Chgo Trib: Chicago Mayor Brandon Johnson in Washington to ask for $5 billion in migrant funding
AAPL revenue down four consecutive quarters.
–Of course, the big lead-off article in the press is that SBF was found guilty of defrauding crypto clients and may face 100 years in jail. Translation, he may face a six month delay before joining Jon Corzine in the Hamptons.
