• The Coming Pan-European Soverign Debt Crisis
    Reggie Middleton
    02/09/2010 - 05:12
    The levered assets of the banks in many Euro-sovereign nations easily outstrip those nations' GDP's. So when the nations' banks get in trouble from bad banking practices (and a very large swath have), the nations themselves are helpless in attempting to truly save the banks (and instead only institute a bait and switch wherein private default risk/insolvency potential is swapped for public manifestations of the same).
  • NYSE Euronext Announces Trading Volumes for January 2010
    Chopshop
    02/09/2010 - 02:41
    Derivatives trading volumes in January 2010 were stronger, with European derivatives volumes increasing 32.4% and U.S. options trading volumes increasing a whopping 102.4% y/o/y. Cash equities trading volumes were mixed, with European cash transactions increasing 4.1% and U.S. cash equities trading volumes declining 23.7% from Jan '09. Total interest rate products ADV of 2.7 million contracts in January 2010 increased 37.8% from January 2009, and increased 50.5% from December 2009. Total interest rate product ADV is at the highest level since March 2008 !

Treasuries Testing Support

Tyler Durden's picture
Submitted by Tyler Durden on 10/22/2009 07:39 -0500



Submitted by Nic Lenoir of ICAP

We are right back around the support zone in 10Y futures. At this point the Fed has done very little except talking about how it would maybe some day change policy, but until then the front-end catches a bid as soon as nothing happens. That's why for now all attention should be turned towards the 10Y future and the longer end of the curve where a sell-off based on USD weakness and rejection of low yields by investors to hold sovereign US debt could possibly be the trigger that forces front-end long out of their comfort zone.

The support zone is between 117-28 and 117-30. A break there would certainly lead us to 116-20, which will be the key intermediary support. We cannot make a bigger case of that 116-20 support, because if broken there is virtually nothing to hold us until 113-15, which is were you can potentially trigger a proper fire sale in US bonds. I don't think that last support is in any danger just now, but it is far enough away that testing it would be felt yield-wise and probbaly generate solid worries. Having said that on the downside case, for now we are holding the support zone, and the longer we consolidate around here the better the chances of going to re-test 119-23. As trading develops here it seems we are lacking a catalyst for the break, so we would probably trade the range, but one should not be stubborn on a break.

Good luck trading,

Nic

5
Your rating: None Average: 5 (1 vote)

»


by Anonymous
on Thu, 10/22/2009 - 07:59
#106660

Thanks

by Anonymous
on Thu, 10/22/2009 - 08:12
#106666

110, that's the number

by Anonymous
on Thu, 10/22/2009 - 08:30
#106677

Of course without fed buying who knows where they would be by now?but the question realy is who knows what banks and the fed are doing?I have noticed that lately every time we are close to 4.5% yield,the ten year goes back up in price. I doubt that this is free market reaction,however, I believe eventually and after there is no more room for the dollar to drop (as a free valuation,and due to the drop in the account deficit),then we will see a rise in the yield to way above the currwwnt level.

by Anonymous
on Thu, 10/22/2009 - 09:34
#106747

Might be a good time to pull out MA's chart. Support levels are ~ 115, 110, 103, then next stop ~79, but not until late 2010. (If I read it correctly being a deer in headlights you know).

Oxytan

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Post new comment

CAPTCHA
This problem is intended to determine if you are a machine- or not sufficiently intelligent (or determined) to participate at Zero Hedge.
66 plus 29 equals
Solve this math question and enter the solution with digits. E.g. for "two plus four = ?" enter "6".