Market summary

March 25,2010


Market Summary

USD dollar index closed at 82.5

USD/Eur currency closed at 1.329.

Today Germany and france have reached a deal with regards to aid package to Greece. This involves IMF. ECB president has responded saying this kind of mechanism will hurt Euro. Consequently euro fell further. It looks it has further to go

30y futures: closed at 115.04. Last two days have been very damaging to treasuries. The following factors played into the weakness of the treasuries

1) Weak treasury auctions (markets are uncomfortable to impending treasury supply)

2) Swap market spread unwinding activity. Lots of players have crowded into spread wideners and this was not happening.

These two factors weighed heavily on the bond prices

Oil: oil is trading with in the ranges near $ 80

Gold has traced down to 1090 levels.



Equity markets had a volatile session. Markets rallied initially at the behest of good earnings from best buy, qualcomm and probable end to the woes of Greece. But towards the end of session markets shed all the gains that were obtained due to strengthening of the dollar

For tomorrow we will be awaiting GDP data and Michigan sentiment indicator.