My confidence is growing that we shall have a decent decline in Eurodollars Reds prior to the FOMC report. More generally, the bullish contingency has been reducing positions while the bearish contingent has remained skittish
It is unusual when open interest in Eurodollars and Treasury futures declines on the session where the employment report is released. The reason for generally higher open interest results on these sessions may be that all parties involved have a greater confidence in their understanding of current conditions and are thus more willing to enter into new positions.
The Treasury 30-year yield is slightly higher to 2.87% after trading to a 3 month low of 2.84 yesterday. The chart below shows support toward these levels as old high yield levels of 2.84% and 2.85% were reached in March and December ’14 respectively.