Key Takeaways with Craig

After the FOMC decision to hold its Fed Funds target rate steady on Wednesday and a jobs report this morning that proved to be “bad news is good news” US Treasury Yields fell and US Equity Index prices rallied to begin the (partial) first week of November trading.  The following is the weekly recap of net price and volatility changes using QuikStrike and CVOL data.

  • US Treasury Yields fell, as the Micro 10-Year Treasury Yield future was down by about 30 basis points.  The short end of the curve didn’t move as much so the curve flattened (though in this context, flattening means the 2s and 10s diverged).  CVOL in CME’s Treasury options markets declined.
  • Perhaps related to the decline in Treasury Yields, US Equity prices shot up with the E-mini S&P 500 and Nasdaq-100 futures prices up by about 6%.  Implied volatility in the options fell sharply here as well.
  • WTI Crude Oil futures prices fell and CVOL in the options fell dramatically, despite the geo-political situation around the globe. 
  • Gold futures prices were near steady on the week though CVOL declined. 
  • Despite a drop today, Bitcoin futures price was higher on the week and implied volatility in the options continued to increase. 

As always, we hope all our In FOCUS readers have a happy and safe weekend and, for those affected, remember to set those clocks back!

Today's Future Price Action

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