Big earnings week
January 25, 2021
–Ten year futures pinned the 137 strike on Friday’s Feb option expiration as TYH settled 137-01, with a corresponding cash yield of 1.087% down 2 bps on the day. Although this week features the FOMC on Wednesday, and treasury auctions of 2, 5 and 7 year notes beginning today, earnings reports from tech giants may overshadow other news. MSFT and AMD on Tuesday, AAPL, FB and TSLA on Wednesday. Core PCE prices released on Friday (Fed’s preferred inflation measure).
–Continued buying of 3EU1 9862.5p for 5.0…accumulation of 50k last week. Treasury vol remains muted; we’ll probably see some replacement buying of wings in April this week as Feb expired.
–Libor transition announcement on its way. At 5pm London today, “the benchmark’s administrator will stop accepting feedback on its plan to extinguish the rate, setting the stage for an announcement, possibly within days…” (link below)
–Interesting La Nina link also attached. The article attributes part of the rise in soybean prices to negative effects of La Nina in Argentina.
https://blinks.bloomberg.com/news/stories/QNDVXIT0AFB4
https://blinks.bloomberg.com/news/stories/QN8GGSDWLU6G
