Archive for the ‘Uncategorized’ Category

Humongous

Thursday, October 23rd, 2014

I am not sure if I have ever seen that word in print before but a finance Professor uses it to describe an error in futures trading yesterday. Via Bloomberg: (BN) ‘Humongous’ Treasury Future Move Shows Trader Didn’t Do Hom ework +------------------------------------------------------------------------------+ ‘Humongous’ Treasury Future Move Shows Trader Didn’t Do Homework 2014-10-23 16:03:18.642 GMT By Matthew Leising ...

More on TIPS Auction

Thursday, October 23rd, 2014

I just received an email from another market maker with thoughts on the 30 year TIPS auction. He thinks that the auction is likely to produce a small tail but clients are most comfortable with the 30 year sector. He noted that if someone needed a big chunk the auction ...

Miscellany

Thursday, October 23rd, 2014

The Treasury will sell $7billion 30 year TIPS today at 100PM. The consensus is that the issue is cheap and that it will attract interest from investors with a long term horizon. The breakeven is just above 200 basis points and many long term investors believe that as an entry ...

Corporate Issuance

Thursday, October 23rd, 2014

Via Bloomberg: IG CREDIT: Seven to Price as Week Approaches $30b for 15th Time 2014-10-23 14:15:02.461 GMT By Lisa Loray Oct. 23 (Bloomberg) -- Seven issuers are expected to price transactions today after eight priced $13.025b yesterday, the most active session in one month.  Weekly volume to approach $30b for the 15th time in 2014; Oct. nears ...

Corporate Bonds

Thursday, October 23rd, 2014

Corporate bond spreads are unchanged today. The VZ deal which priced yesterday is a tad on the heavy side. For the uninformed (and I blogged little yesterday and did not report this) VZ sold $1.5 billion  7 year notes at +115, $2.5 billion 10 year notes at +135 and $2.5 ...

Swap Spreads

Thursday, October 23rd, 2014

Swaps spreads are essentially unchanged today in 2s 5s 10s and 30s. From the widest levels attained last week in the Treasury market short squeeze spreads are about 2.5 basis points tighter. One market maker with whom I conversed thinks that the resting position is now long spreads. He thinks ...

What to Watch Today

Thursday, October 23rd, 2014

Via Bloomberg; WHAT TO WATCH: * (All times New York) Economic Data * 8:30am: Chicago Fed National Activity Index, Sept., est. 0.15 (prior -0.21) * 8:30am: Initial Jobless Claims, Oct. 18, est. 281k (prior 264k) * Continuing Claims, Oct. 11, est. 2.380m (prior 2.389m) * 9:00am: FHFA House Price Index m/m, Aug., est. 0.3% (prior 0.1%) * 9:00am: FHFA House Price ...

Bear Market Rally?

Thursday, October 23rd, 2014

Via Barron's: Getting Technical Stocks’ Recent Rally May Not Last All the sectors that are keys to market health are lagging, including retail, technology, home building, banks and small-caps. Caveat emptor. By Michael Kahn Oct. 22, 2014 5:23 p.m. ET Canadian singer Bryan Adams sang in a 1983 release, “It cuts like a knife, but it feels ...

FX

Thursday, October 23rd, 2014

Via Marc Chandler at Brown Brothers Harriman: Divergent Data Drives Currency Markets - Stronger euro-area PMI and hawkish ECB comments helped lift the euro - The UK reported weaker than expected data - Lower than expected New Zealand Q3 CPI data overnight prompted a small selloff in the kiwi - HSBC reported its October ...

Secondary Market Corporate Bond Trading Yesterday

Thursday, October 23rd, 2014

Via Bloomberg: IG CREDIT: Volume Remains High; DAIL, ISCTR Set to Price 2014-10-23 10:01:43.717 GMT By Robert Elson Oct. 23 (Bloomberg) -- The final Trace count for secondary trading was $17.6b vs $17.9b Tuesday, the highest since $18.1b April 23. and $15.2b the previous Wednesday. * 10-DMA $14.4b; 10-DMA of only Wednesday sessions $14.6b. * 144a trading added ...