Euro$ Interest Rate Futures
Euro$ interest rate futures are mixed after some volatility surrounding the employment report and subsequent ISM and construction releases. CME Group sources remain stumped by the resilience of the short-dated rate contracts, but argue for more curve steepening into next week’s FOMC meeting.
Accordingly, the nearby Dec-08 contract is off 2-ticks at 96.985, while the deeper deferred contracts are higher by as much as 4-ticks. Early option activity was mixed, though some bullish trades have emerged more recently.
About 20k in demand for “calls and call spreads” on the Dec-08 future have been reported, perhaps contributing to the underlying pop from session lows of 96.95. Charts provide support at 96.94 for another run higher at 97.095 resistance at a minimum.