Just wondering

Just Completed 10 year auction was pretty darn good if we measure the When issue vs. the Actual Auction rate,the stop through was 1.1 bps. the when issued was 1.82% the high yield at auction was 1.809% per Zerohedge the biggest difference in almost 1 year.Bid to cover was solid , indirect bidders 64.5% vs last month 58.5% also good. late yesterday a handful of articles writtem about some issues still present in U.S. China trade,it isnt a guarantee that china Fully on board for Phase 1 . https://asia.nikkei.com/Economy/Trade-war/Emboldened-China-refuses-to-flinch-on-tariffs-in-US-trade-talks and http://www.globaltimes.cn/content/1169065.shtml

Spoos Higher earlier this morning not paying much attention to these China related stories but someone else was. Per IFR News from earlier this morning “Treasuries were already moving higher just after the CME open with CTA, sellers all week, in covering in FVZ out to USZ. But a blocked 50.921k TYZ 131 calls (delta 0.09), plus another 45k bought on the screens (non-blocked) added to the bid as the option locals had to buy nearly 9k TYZ. The trade looks like a new position as OI in the TYZ 131 calls as of last night was 109k. The option expires on November 22 with the strike equating to a 1.54% yield on the cash 10-year note, so a very bullish bet, or more likely a major hedge vs. a disastrous event that would plunge yields. The trade was linked to a large bond fund.” Somebody making a big bet on higher prices even after prior few days when it looked like yields were breaking out to upside. Low and behold A headline this afternoon saying that US/China trade deal may not be signed in November maybe delayed to December. Just A coincidence I guess

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