Key Takeaways with Craig
US Equities struggled to find a clear direction today but, ultimately, closed mostly lower, though the small-cap Russell 2000 did manage a small gain on the day. Implied volatility in CME’s Equity Index options was little changed on the day. US Treasury yields rose, in what we might refer to as a “parallel shift” (the steepness of the yield curve did not change substantially) by the following, according to CME’s Micro Yield Futures:
- Micro 2-Year Yield: 3.119 (+5.2 basis points)
- Micro 5-Year Yield: 3.258 (+4.9 basis points)
- Micro 10-Year Yield: 3.208 (+7.9 basis points)
- Micro 30-Year Yield: 3.323 (+6.3 basis points)
In other CME Group markets, WTI Crude Oil futures prices rose by about 2% and Natural Gas prices were up by about 3.5%. Most major currencies rose versus the US Dollar in CME’s FX futures markets while Gold futures prices were little changed on the day.
It’s been a while since we’ve taken a close look at the Gold markets so we used QuikStrike to graph the August expiration price and volatility now (yellow line) and in each year since 2015. As you can see, the price of Gold futures is as high as it’s been at this time of year since 2015 and the implied volatility in the options is somewhat close to the average level over those years.
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