Today's U.S. income report revealed several January impacts Today's U.S. income report revealed several January impacts from weather, the ACA, and the loss of extended benefits. For weather, analysts saw a $15.5 B January surge in consumption of energy goods and services that lifted service consumption. For the Affordable Care Act (ACA) analysts had January pops of $19.3 B for Medicaid benefits and $15.6 B for "other" government social benefits, alongside a $30.5 B surge in January health care spending that reflected BEA assumptions rather than actual spending data. For the 2014 loss of extended jobless benefits, analysts had a $15.5 B January drop in income from government unemployment payment.
Euro$ interest rate options: bearish positioning Euro$ interest rate options: bearish positioning included the sale of 11k Long Red Dec 2015 95/96 call spreads. The front month Mar 2014 contract is fractionally lower near 99.7625, while the deferreds are up to 6.5-ticks higher thanks to the escalation of the Crimean crisis and reversal lower in stocks in Europe and U.S.
NY Fed outright purchase: Fed is buying $2.25 B to $2.75 B in Treasuries NY Fed outright purchase: Fed is buying $2.25 B to $2.75 B in Treasuries ranging in maturity from May 15, 2021 through February 15, 2024. The Fed will purchase a total of $6.50 B to $8.0 B in Treasuries in four operations during the week.