Archive for the ‘Uncategorized’ Category

Lacker on SOMA MBS Holdings

Friday, September 19th, 2014

On Wednesday along with its usual statement  the FOMC released a document which details its exit strategy and plan for hiking rates. One point that the document highlighted is that the FOMC does not plan regular sales of the MBS which it has accumulated in the SOMA since early 2009. ...

Keep Obama Healthy

Friday, September 19th, 2014

Someone once referred to Vice President Biden as a "walking gaffe machine". TheHill.com details a trio of verbal gaffes this week. The story headline is about his praise of a GOP Senator who resigned about twenty years ago for sexual misconduct. Earlier in the week he used the term "shylock" ...

Emerging Market Slowdown

Friday, September 19th, 2014

The IMF is out with a new paper which chronicles a broad based slowdown in Emerging Market economies.According to the paper and the FT story emerging markets as a group were growing a 7 percent clip before the financial crisis. Those economies are still expanding but at a reduced rate ...

Treasury Market Update

Friday, September 19th, 2014

The Treasury market continues its robust recovery from the depths of (post) dot depression. Dealers report an outburst of short covering by speculators as well as end user buying in the long end. One portfolio manager though that the market's failure to crater and break to a new trading range ...

Swap Spreads

Friday, September 19th, 2014

Swap spreads are mostly tighter today. The 2s 10s and 30s are each tighter by a 1/4 basis point. The 5 year spread is wider by 3/8 basis point. That spread widening is reflective of the punitive repo rate on the 5 year note which traded as rich as negative ...

Treasury Market Update

Friday, September 19th, 2014

Prices of Treasury coupon securities have stabilized and are posting modest gains. The 5 year note held at the critical 1.85 to 1.87 level and the 10 year notes attracts fresh buying at the 2.62 level. Dealers with whom I conversed this morning report light activity. One TIPS trader reported ...

Secondary market IG Trading Yesterday

Friday, September 19th, 2014

Via Bloomberg: By Robert Elson Sept. 19 (Bloomberg) -- The final Trace count for secondary trading was $14.3b vs $14.5b Wednesday and $13.3b the previous Thursday. 10-DMA unchanged at $13.1b vs $13.2b, the highest count since late May; 10-DMA of only Thursday sessions $12.5b. * 144a trading added another $2.4b of IG volume * GS 3.85% 2024 ...

September 19 2014 Opening

Friday, September 19th, 2014

Prices of Treasury coupon securities continue to be under assault as the markets declined once more overnight in a session dominated by the defeat of the proposal to split Scotland from the United Kingdom. The defeat of that measure permits participants to refocus on economic fundamentals and monetary policy and ...

Next Stage of Abenomics

Friday, September 19th, 2014

The Japanese Prime Minister Abe pens an Op Ed piece for the WSJ on the next stage of his eponymously named program. He speaks of lower corporate taxes and deregulation as well as programs to assist women. Via the WSJ: Opinion The Next Stage of Abenomics Is Coming Make no mistake, Japan will emerge ...

Goldman Sachs on the UK

Friday, September 19th, 2014

Via a fully paid up subscriber: UK VIEW: Goldman Sachs has left its central economic forecast for the UK economy unchanged following Scotland rejecting independence, but it has "removed a downside risk to UK economic growth. "Our outlook is relatively positive: we continue to forecast GDP growth of 3.4% in 2014, ...