Monday, December 10, 2018
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non-synthetic futures and option strategies

low rates seen as inflation trigger

chicago (14:06 et)-in a reaction that seems contrary to typical market moves, the release of weaker-than-expected economic data friday sparked concern about long-run inflation among some traders of u.s. interest-rate futures.

stocks set to fall, but safe from 'flash'-type slide

the relative calm in the credit markets indicates the stock market's recent pullback isn't a result of investors running from risk, like they did last summer.

big eurodollar options plays see stronger rally

(13:32 et) a pair of large options trades sees longer-dated eurodollar futures rallying the next few months, meaning the market would continue to price in lower rates. brokers reported a trading firm performed about 60k call spreads. they aim for september 2013 eurodollars reach 98.375 in one of the transactions and 98.625 in the other, equal to implied 3-month dollar libor of 1.625% and 1.375% respectively, before the calls expire this july and september. september 2013 eurodollars were recently trading 7 basis points higher at 97.885, or an implied 3-month dollar libor of 2.115%.

euro gains against major currencies after good business climate results from germany

(09:26 et)---the euro is trading higher against other major currencies on tuesday. at the moment, the euro stands at 1.4076 against the u.s. dollar, or 0.206% higher than in yesterday's close. the euro is also gaining ground on the japanese yen, adding 0.02% to its value to trade at 115.23. the euro reacted positively to good news from germany, as its business climate index managed to beat expectations. while most analysts predicted the index to fall from 114.20 in april to 113.70 in may, germany's economy posted 114.2. this also represents an end to the index's losing streak, as the value of index fell in the last two months.

eurodollar futures rise amid treasurys rally

(11:29 et) june 2012 eurodollar futures price in a rate 43.7 basis points above that for june 2011, down from 45.2 friday as fixed-income instruments rise amid a flight-to-safety bid. the narrower 1-year calendar spread reflects the view that short-term rates will rise at a slower pace.

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