Quick note
June 1, 2022
–Yields ended Tuesday quite a bit higher than Friday, with tens up nearly 10 bps to 2.842% as Waller’s hawkish speech on Monday spilled over. End of the month trade was rather volatile, and indeed implied volatility firmed in treasuries on the move to higher yields.
–Today’s news includes Mfg ISM, expected 54.5 vs 55.4. Prices 80.5 vs 84.6. JOLTS expected 11.3m vs last month’s record 11.549. Williams and Bullard speak midday, with Beige Book at 1:00pm, one hour after Bullard.
–CLN2 (July WTI) hit a high just shy of $120 yesterday, but encountered a sharp pullback related to news that OPEC could supply more. However, it’s back at 116.20 this morning, with seemingly bearish news providing only a brief respite.
–One interesting late trade, SFRU2 9800/9825/9837.5c fly traded 2.0 vs 9766.5 late in the day. This has traded a couple of weeks ago for 3.25. Great trade for the idea of less than 50 in July and/or a September pause.
