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On Friday, most markets traded quite choppy, as the eco calendar was devoid of market moving data and due to triple-witching day, which may have added to the underlying volatility.

As such, we would be careful to draw many conclusions out of Friday’s trading session.

Overall, government bonds had a strong session, even though equities moved higher too.

As such, government bonds reversed (part of) Thursday’s huge losses, especially in the euro zone, but in the US, Treasuries lagged the rebound ahead of this week’s supply.

This week, the US Treasury will sell a record $104B in 2-, 5- and 7-year Note auctions on Tuesday, Wednesday and Thursday.

In the euro zone, Belgium (3-year), France (30-year) and Ireland (10-year) are all planning to issue a new benchmark via syndication, while the Netherlands and Italy will tap the market on respectively Tuesday and Friday.

MEE – Massey Energy Corp. – The coal producer edged onto our ‘most active by options volume’ market scanner this afternoon after one investor was seen initiating a bullish reversal in the July contract.

Although we could not see any obvious driver behind today’s play, the trader is looking for shares of MEE to move higher over the next month.

Shares are currently up more than 1% to $19.97.

The transaction involved the sale of 9,000 puts at the just-in-the-money July 20 strike price for an average premium of 1.55 apiece spread against the purchase of 9,000 calls at the July 20 strike for 2.05 each.

The net cost of the trade amounts to 50 cents per contract and yields a breakeven point at $20.50.

Treasuries for sale or rent.

The buck ain’t worth but 50 cents.

More rules, more czars, more debt.

I won’t let you make those risky bets.

Ah but, more powers I have found will let me push entrepreneurs around.

I’m a country of means by no means king of the Fed.

If you have seen one bubble you have seen them all.

Tim Geithner defending the administration asking for sweeping regulatory powers while the government racks up record debt with him saying that we still need to do more.

June 23-24 FOMC Meeting – Coast is Not Clear Yet, Minor Modifications of April Statement Likely

The outcome of the June 23-24 FOMC meeting with regard to the federal funds rate is nearly certain.

The policy statement of April 29 (see excerpt below) is likely to show small modifications about growth and inflation prospects.

“The economy has continued to contract, though the pace of contraction appears to be somewhat slower.

Household spending has shown signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit.

Weak sales prospects and difficulties in obtaining credit have led businesses to cut back on inventories, fixed investment, and staffing.