Bank Analysts Ponder Falling Ten Year Interest Rates Ahead of Potential Fed Rate Rise

As the U.S. Federal Reserve begins to consider tightening interest rates potentially in September, where will longer dated interest rates go in the short term?

Credit Suisse research of Ten Year Interest Rates using Option Sentiment Indicator issues sell signal

After heavy trading in ten year note call options, Credit Suisse Research Analyst William Marshall uses his Option Sentiment Indicator to conclude a sell signal has been reached.

The Option Sentiment Indicator (OSI) measures “fast-money sentiment” by tracking the delta-weighted volumes of puts and calls traded in the rates futures market.  Trading volumes are assigned different levels of importance based on the delta, or rate of change, assigned to the underlying option. Thus nearer the money options have a different significance...