Bonds
Bond volatility is holding steady. Pakistan/India situation holding up volatility. Fed commenting on “shrinking the balance sheet” and throw in the Trump factor, trade war talks North Kore unemployment numbers next week another FOMC later in the month are very good reasons volatility remains high. Strong liquidation yesterday shaking out some longs one the break of 145.25 saw spike in volume and volatility. Bonds need to hold 144 or could test 143. I think it is notable that over 7k 142.5 puts trade early today. As well as largest open interest on the 141 puts both options expire on 3/8/19. Following the flow suggest that a move lower is coming soon. One could take advantage of the vol spike by buying wk 3 143 put sell wk 2 142 put for 12/64 if the risk matches the individuals risk tolerance.
Protect yourself at all times,