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Posted by Tango
on February 7, 2019, 7:03 am
Yesterday’s volume consisted of mostly spreads both in the total and in March. Outright activity continues to produce a quiet and a tight range market. Today, RC opened with buying but like KC the strength dissipated as the $ rose. Spreads in RC are steady and the arb is 33.80. The depth of market reveals interest on both sides and is likely options related. Tomorrow is March option expiration and the quiet market provides relief and patience for the option shorts. The ¥ is again the only major currency that is higher against the $ while all EM are down except for the Colombian Peso which is unchanged at 3104.00. The USDMXN is 19.1438 +.0360 and the USDBRL is 3.7185 +.0203 +.55%. 8:00 should bring buying by funds as they have been in a short covering mode with limited impact on the market. The roll is confined to spreads and interest is absent in KC as it is in several other markets. Bond futures are higher, metals are mostly lower as are crude and equities. The softs are all lower.