MNI BRIEF: Fed's Goolsbee Sees Rates Fair Bit Lower In A Year

CANADA JOBLESS RATE +6.8% VS FORECAST +6.6%, PRIOR +6.5%

MNI China Daily Summary: Friday, December 6

MNI: PBOC Net Drains CNY288.1 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1848 Fri; -1.64% Y/Y

BRIEF: EU-Mercosur Deal In Final Negotiations - EC

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

EZ/UK Bond Supply Calendar: Austria, UK Auction on Tuesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

### POV, UNWINDING THE FADE AND......>

US TSY FUTURES
US TSY FUTURES: ### POV, UNWINDING THE FADE AND TAKING LOSSES
- Deep background on day's modest put condor sale: -20k Dec 71/72/73/75 put
condors, 0.75, adds to sale of some 17.5k at 1.0 on June 7. Could be just tip of
the iceberg if macro fund decides to unwind fully. Back in late March the fund
were Heavy buyers, fading a rate rally that started to imply a 50bps rate cut by
year end (MNIs PINCH model at time had probability of 25bp cut at 122%).
- The acct bought over +200,000 Dec 71/72/73/75 put condors from 3.5-5.5 (others
+10k short Jul 81/83/86/88 put condors at 4.5; +20k Jul 76/77/78/80 put condors,
2.75; +60k short Dec 86/88 call spds, 3.5).
- Fast forward: current mkt pricing in chances of three 25bp cuts by yr end
w/carry over to 2020 amid persistent global growth concerns exacerbated by US
tariffs. Fading rate cuts does not look like a winning proposition. Acct
starting to take off the position while they can still extract some premium to
soften the blow.
- Upside call buy theme: Current trade favors buying Mar'20 90/92 call spds and
par calls in Reds (EDU0-EDM1).
MarketsFixed Income Bullets
MarketsFixed Income Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.