Massive insurance for CPI. Paper now long close to 185,000 (maybe more, look at OI tomorrow) October 106 puts in the 10yr options. Mostly for 3 ticks. Most accounts about 20,000 of these on average. I don't think bulls are out of the woods yet. They do dominate these ranges mid-day though. Every day this week we manage to open weak on Japan or Europe, then straight higher by the 2pm close.
But 40% of the core inflation index is tied to rents. The "owners equivalent rent" index (derived from how much homeowners say they could charge in rent), rose by just 0.2%. (There was also a 0.9% drop in apparel prices, a 1% drop in new car prices). "There are powerful forces holding the inflation rate down going forward, most importantly the weakness in the rental housing market," commented Dean Baker, co-director of the Center for Economic and Policy Research in Washington, in a research note today. "There are powerful forces holding the inflation rate down going forward, most importantly the weakness in the rental housing market," commented Dean Baker, co-director of the Center for Economic and Policy Research in Washington, in a research note today. --------------------- It's good for the economy and the stock market that inflation remains low. But are we really getting a true reading on inflation when home price appreciation isn't added into the mix? I think not. BW/Aug 16, 2005
poor gold..the CBs have until Sept 26 to meet their selling quotas for '06. looks like they all went at once... I suppose they will buy treasuries