?-To The Moon - Tiger Brokers Online Investing Community

4
Comment
Favorite

11621083
2021-07-28

Cheap Negative Rate Bets Fly Off the Shelves Before Fed Decision

Demand for eurodollar 100.00 call options seen over past week Front-end futures remain priced for a

Cheap Negative Rate Bets Fly Off the Shelves Before Fed Decision

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

Top
Latest

No comments yet

Most Discussed

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"magic":2,"id":801349266,"tweetId":"801349266","gmtCreate":1627484552755,"gmtModify":1703490952928,"author":{"id":4089717189682940,"idStr":"4089717189682940","authorId":4089717189682940,"authorIdStr":"4089717189682940","name":"11621083","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":0,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"extraTitle":"","html":"<html><head></head><body><p>?</p></body></html>","htmlText":"<html><head></head><body><p>?</p></body></html>","text":"?","highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/801349266","repostId":1131233069,"repostType":4,"repost":{"id":"1131233069","kind":"news","pubTimestamp":1627482267,"share":"https://www.laohu8.com/m/news/1131233069?lang=&edition=full","pubTime":"2021-07-28 22:24","market":"us","language":"en","title":"Cheap Negative Rate Bets Fly Off the Shelves Before Fed Decision","url":"https://stock-news.laohu8.com/highlight/detail?id=1131233069","media":"Bloomberg","summary":"Demand for eurodollar 100.00 call options seen over past week\nFront-end futures remain priced for a ","content":"<ul>\n <li>Demand for eurodollar 100.00 call options seen over past week</li>\n <li>Front-end futures remain priced for a March 2023 rate liftoff</li>\n</ul>\n<p>Traders are piling into inexpensive options that hedge against negative interest rates as bets on&nbsp;Federal Reserve&nbsp;hikes are pushed further out into 2023.</p>\n<p>Over the past 10 days, demand has emerged for an array of 100.00 call strike options on eurodollar contracts -- which are priced off Libor -- protecting against potential interest-rate cuts. More than 100,000 options have been bought across an array of tenors during that period. The call strike coincides with a Libor rate of zero, compared with Wednesday’s return of 0.1285%.</p>\n<p>Just before the Fed meeting, eurodollar futures are pricing in the first rate hike around March 2023 -- from December 2022 at the start of last week. Further out, the path of tightening is seen by traders as shallow, with the next move not expected before 2024.</p>\n<p><img src=\"https://static.tigerbbs.com/2aebee67b4f7b978f28e12fcf1d187fd\" tg-width=\"963\" tg-height=\"386\" width=\"100%\" height=\"auto\"></p>\n<p>Traders seeking out those hedges see potential scope for an even more dovish swing to the front-end pricing of the Fed’s policy path. With the&nbsp;threat of a surge&nbsp;in Covid-19 cases, fueled by the highly transmissible delta variant, the central bank’s June policy&nbsp;statement&nbsp;flagging progress on vaccinations already looks outdated.</p>","source":"lsy1584095487587","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Cheap Negative Rate Bets Fly Off the Shelves Before Fed Decision</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCheap Negative Rate Bets Fly Off the Shelves Before Fed Decision\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 22:24 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.bloomberg.com/news/articles/2021-07-28/cheap-negative-rate-bets-fly-off-the-shelves-before-fed-decision><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Demand for eurodollar 100.00 call options seen over past week\nFront-end futures remain priced for a March 2023 rate liftoff\n\nTraders are piling into inexpensive options that hedge against negative ...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2021-07-28/cheap-negative-rate-bets-fly-off-the-shelves-before-fed-decision\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.bloomberg.com/news/articles/2021-07-28/cheap-negative-rate-bets-fly-off-the-shelves-before-fed-decision","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1131233069","content_text":"Demand for eurodollar 100.00 call options seen over past week\nFront-end futures remain priced for a March 2023 rate liftoff\n\nTraders are piling into inexpensive options that hedge against negative interest rates as bets on Federal Reserve hikes are pushed further out into 2023.\nOver the past 10 days, demand has emerged for an array of 100.00 call strike options on eurodollar contracts -- which are priced off Libor -- protecting against potential interest-rate cuts. More than 100,000 options have been bought across an array of tenors during that period. The call strike coincides with a Libor rate of zero, compared with Wednesday’s return of 0.1285%.\nJust before the Fed meeting, eurodollar futures are pricing in the first rate hike around March 2023 -- from December 2022 at the start of last week. Further out, the path of tightening is seen by traders as shallow, with the next move not expected before 2024.\n\nTraders seeking out those hedges see potential scope for an even more dovish swing to the front-end pricing of the Fed’s policy path. With the threat of a surge in Covid-19 cases, fueled by the highly transmissible delta variant, the central bank’s June policy statement flagging progress on vaccinations already looks outdated.","news_type":1},"isVote":1,"tweetType":1,"viewCount":158,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":1,"xxTargetLangEnum":"ORIG"},"commentList":[],"hasMoreComment":false,"orderType":2}