Good economic news: Good for stocks, bad for bonds?
The bond market didn’t take the positive jobs and housing numbers well, as the MAR14 U.S. 30-year bonds are down 27 ticks to 129’11. If this is any precursor to Friday’s jobs report, we could see another bond market sell-off in two days.
Capitalizing on ECB policy easing with options spreads
With the ECB signaling there could be more policy easing in the future, the market reacted by breaking the Euro currency future’s win streak and sending prices lower by 0.70%. Use an options spread to set up a trade with a great risk vs. reward ratio.
Canadian dollar falls to lowest in 3 years on rate-cut wagers
Canada’s dollar fell to the lowest level in three years as central-bank Governor Stephen Poloz warned of the risks of low inflation, spurring speculation interest-rate cuts may be considered.
EU is shocked that banks colluded on interbank rate
A long time ago some big banks decided that it would be good to sell interest-rate derivatives. To do that they needed an interest rate on which to sell derivatives. Various possibilities presented themselves -- Treasury rates or whatever -- but the interest rates that the banks themselves paid on...
