There have been rumors of recent financial distress at some proprietary trading firms that trade Eurodollar Short Term Interest Rates on the CME Group exchange. The latest block trades posted today confirm that one of these firms might have capitulated or sold the position to deeper-pocket hedge funds or trading firms.
A massive move higher in interest rates futures (lower in yield) and abnormal call skews has created a trading opportunity. It's a risk-off trade, but it's also a view that the political drama and Trump battle with Fed Chairman Jerome Powell is ultimately going to fade.
Daily global fixed income report
A fundamental look at global fixed income markets.
Daily look at global fixed income markets.