I have been trading Eurodollar futures and other bonds. They are close to 98 right now for the Dec contract. Doesn't leave much room to go down any furthur. I don't suppose it can go much lower. What does anyone think is the bottom?
TD

1.5 fed funds rate, is as low as i've ever seen it. Of course this low rate opens up all kinds of opportunities. For example some spreads in the interest rate futures. It is hardly thinkable that it could go to absolute zero, or worse Negative? Would the Fed pay the pays to take money? I think I would like to open up a bank and get paid buy the Fed - Ha! JFC

Although financials are generally not considered as candidates for scale trading, I believe there is a very interesting opportunity in accumulating short positions in eurodollars. This is because one of the few absolutes in all of stock and commodity trading is that euros cannot go above 100. That is because (as noted in the message I am responding to) it would create a scenario where we the lenders (buyers of euros) would be paying the government to keep our money, as opposed to them paying us interest to borrow our money. Depending on account size, a scenario might be to begin shorting one contract at 98.00 and then every .25 until whenever the bottom is reached, and worst case, the bottom is reached when the interest rate is 0% which happens when euros are at 100. Although interest rates may remain low for a sustained period of time, they always go back up for whatever reason. Just my two cents...

Jim

I read in the WSJ that one of the Treasury instruments went negative for a short period of time. The article was written shortly after the Oct 87 crash. I wouldn't mind writing some negative rate bonds for the world.