Euro$ interest rate options: more activity Euro$ interest rate options: more activity included a package purchase of 3k in June 96 calls vs a sale of 1.5k in March 97 calls and June 97 calls. Then there was a purchase of 4k in front September 93/95/96 call butterflies and 1.5k in June 92/93/95 put butterflies. Finally, noted was a purchase of 15k in Short September 78/82 put spreads vs a sale of 88/92 put spreads. All in a day's work. The March 2015 contract is a half-tick lower now at 99.70, while the deferreds have turned mixed from -2 ticks to +3.5 ticks out the back.
FX Action: USD-JPY is trading comfortably on the 119 handle FX Action: USD-JPY is trading comfortably on the 119 handle, after touching 118.84 lows early in the session on reported profit taking interest. The pairing has stalled ahead of the December 11 high of 119.55, with further advancement from there likely to be a grind into noted Exporter offers in place up to the 120 mark.
Fed dove Kocherlakota: failure to respond to weak inflation Fed dove Kocherlakota: failure to respond to weak inflation risks credibility of the inflation target and the Fed is creating unacceptable downside inflation risks, said the soon to retire uber-dove. He said it would be hard to reverse harmful slide in inflation and the Fed should have vowed to keep rates at zero so long as the inflation outlook is below 2%. Moreover, the Fed should have signaled willingness to buy more bonds if inflation stays low. The dovish tenor of his argument is clear, it has all been said before in his recent dissents.
Atlanta Fed Business Inflation Expectations Bus Infl Exp % Yr/Yr data reported December Atlanta Fed Business Inflation Expectations Bus Infl Exp % Yr/Yr up 1.9% for the year
Guggenheim analysts hold an analyst/industry conference call Analysts provide an update from Washington, D.C. on an Analyst/Industry conference call to be held on December 19 at 11 am.
Barclays healthcare analysts to hold an analyst/industry conference call Healthcare Analysts provide an update on industry trends on an Analyst/Industry conference call to be held on December 19 at 10:30 am.