What I believe is the best fundamental trading opportunity for 2009

 

Fed funds higher from 0.38%

US 3 month interest rates higher from 0.09%

 

Quick links for online reviews

 

1)      Contract information for futures contracts on 90 day deposits outside the Treasury system

 

2)     Contract information on Fed funds futures contract on the C.B.O.T

 

3)     Fed Funds C.B.O.T reference guide

 

4)     Current futures quotes 90 day deposits outside the Treasury system

 

5)     Current futures options quotes on 90 day deposits outside the Treasury system

 

6)     Current Futures quotes Fed funds

 

7)     Current futures opitons quotes on Fed funds

 

8)     Account forms and opening instructions

 

3 month US Treasury yields are at 0.09% fed funds 0.38% 19 November 2009 

See http://www.bloomberg.com/markets/rates/index.html for 90 day and http://sites.barchart.com/pl/cta/quote.htx?sym=ZQZ8&mode=i for Fed funds quotes.

These price aberrations have created one of the best long term fundamental trading opportunities I’ve seen in my 20+ year career.

 

We have designed a program to trade these opportunities.

Put together a team to help you understand and facilitate these trades.

Establish and automatically maintain your positions based agreed fundamentals, strategy and number of contracts.

 

Fundamentals, charts and supporting links

 

US interest rates are near 50 year lows see http://www.bloomberg.com/markets/rates/index.html for quotes which is insane given current economic fundamentals and Fed policy. The currency risk holding US dollar denominated debt at 0.09% is more in one hour than the annual yield. How I’m going to benefit from rates eventually moving higher while collecting 2.5% to 5% monthly (using zero leverage) from option writes explained below. For today’s rates directly from the US Treasury see http://www.ustreas.gov/offices/domestic-finance/debt-management/interest-rate/yield.shtml

 

 

Fed Funds

 

 

90 Day deposits outside the Treasury System