Expectation for a “blue wave” has shifted market sentiment
With the initial shock to the markets seemingly over, and Fed policy set to “easy” to stimulate a recovery, rates markets have been subdued making it harder to see where the next opportunity is.
Could the Fed look to negative rates? The market will let you know.
If you have been paying attention to the short-term interest rate markets (STIRs), you undoubtedly know that volumes have fallen off in Eurodollar options.
Garnering a “Check The Facts” link on social media almost seem to be a badge of honour these days but here the facts support this fake-news headline.
For 5 days in a row under 1 million Eurodollar options contracts have traded.
With the excitement of NIRP subsiding, STIR futures and options are seeing a marked slowdown.
Volatility edged up slightly yesterday then turned lower today after a big straddle seller dragged the rest of the curve lower. Attention continues to be on the 100.00 strike and higher as NIRP questions loom large.
After a slow start to the week, there were large trades across many Eurodollar options expirations, a welcome development
A back and forth session with futures ending mostly lower. Most traders are looking ahead to tomorrow’s NFP number with particular interest after Wednesday’s surprising ADP number. In fact, according to Arbor Data Science, “ADP has printed above 270K only 14 times since 2003.