An Opening Note From An Anonymous Trader

November 18th, 2009 8:10 am | by John Jansen |

CHINA RESISTS CALLS FOR A STRONGER YUAN AND THE FORWARD EXCHANGE MARKET WEAKENS A TOUCH. HONG KONG MONETARY AUTHORITY WAS IN OVER NIGHT BUYING ABOUT $600MM DOLLARS. THE BANK OF RUSSIA ANNOUNCED THAT IT HAD PURCHASED $18 BLN IN OCTOBER AND $6 BLN SO FAR THIS MONTH BUT THAT IT DIDN’T KNOW HOW LONG IT COULD CONTINUE EXPANDING ITS BALANCE SHEETS TO SUPPORT THE DOLLAR. THEIR WAS LESS VISIBILITY REGARDING INTERVENTION FROM THE BANK OF KOREA, SINGAPORE MONETARY AUTHORITY, PEOPLES BANK, BANK OF TAIWAN AND THE SWISS NATIONAL BANK. THERE IS STILL A CHANCE OF A SUDDEN DROP IN THE DOLLAR IF ALL THESE CENTRAL BANKS THROW IN THE TOWEL AND STOP BUYING DOLLARS. 2’S, 5’S AND 7’S ANNOUNCE TOMORROW. THE DESK WAS SELLING 2YR NOTES IN THE 77/76 BPS VICINITY. ALSO SELLING 2’S VS 3’S AND 2’S VS 1-2-3. WE ARE IN AND OUT OF 5’S BONDS FLATTENERS. THERE IS MODERATE SUPPORT FOR CASH 10YR NOTES 100-06/04 AND DOWN TO YESTERDAY’S LOWS AT 99-29.

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