Key Takeaways with Craig
As we move through earnings season, US Equity Indexes closed mix as the technology-heavy Nasdaq index was lower and the Dow Jones Industrials finished higher, though off the days high levels; implied volatility was little changed on the day.
Interest rates and FX futures prices reversed recent trends as the US Dollar fell versus most major currencies and US Treasury yields fell, particularly at the long end as the yield curve flattened again:
Micro 2-Year: Steady
Micro 5-Year: -2.9 basis points
Micro 10-Year: -7.0 basis points
Micro 30-Year: -11.1 basis points
The difference between the Micro 2 and 10-Year yields sits at 22 basis points.
Even after today’s price rally in longer-dated US Treasuries (remember, price and yield move inversely to one another), the price of CME’s standard 10-Year Treasury future remains low relative to the last 3 months (as you can see in the orange line in the QuikStrike graph below) and implied volatility remains relatively high (blue line).
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Today's Future Price Action
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