Archive for November, 2013

Tensions with the Nascent Superpower

Saturday, November 30th, 2013

China and Japan have been squabbling for several years about ownership of some nondescript islands in the East China Sea. Recently China declared an area around the disputed islands a Air Defense Identification Zone. According to the analysis by Stratfor which I have attached the declaration of a ADIZ is ...

Record Sales

Saturday, November 30th, 2013

Once upon a time it would have been proper to write Time Magazine but in the 21st Century digital age it is Time.Com. That website reports that online sales and sales in old fashioned brick and mortar stores broke records on so called Black Friday. Here is the story via ...

Downgrade

Friday, November 29th, 2013

I just noticed this as I skip around the world wide web. S and P has downgraded Netherlands from AAA to AA+. The ratings agency cited the country's weak growth prospects as the reason.

November 29 2013 Opening

Friday, November 29th, 2013

Prices of Treasury coupon securities drifted lower in an excruciatingly slow overnight session. One dealer reported some selling of very short coupons and noted that the tone in credit product was marginally weaker. Yields in the belly of the curve are 1 basis point to 2 basis points higher and ...

Narrow Fiscal Agreement Possible According to WSJ

Thursday, November 28th, 2013

The WSJ is reporting that Congressman Paul Ryan and Senator Patty Murray are close to cobbling together a budget deal. The Journal article notes that a deal is off the table because the negotiators have exempted the difficult issues of taxes and entitlement reform,  topics on which each side is ...

Happy Thanksgiving

Thursday, November 28th, 2013

I want to wish every one who reads this a happy and blessed Thanksgiving. I am thankful for my wonderful family and on this day I thank each of them for being part of my life. Enjoy your day with your family. Peace. John Jansen

ECB Concerns About Tapering and Fragility

Wednesday, November 27th, 2013

Attached is a long piece from the FT which reports on ECB on systemic fragility and expresses concerns about consequences of a tapering by the Fed. Via FT   ECB warns on external risks to eurozone financial system By Claire Jones and Sam Fleming in London and Robin Harding in Washington   The European Central Bank ...

Seven Year Lepidoptery

Wednesday, November 27th, 2013

The 5s WI5 10s butterfly was about 5 when I wrote this morning. As I compose this electronic missive it is about 6.5 basis points. That is tending to the extremely cheap which is at 8 basis points.

Seven Year Note Update and Other Miscellany

Wednesday, November 27th, 2013

One dealer reports the some interest in the WI 7 year on roll and the offered side is now the bid side. Another dealer reports some hedge fund and relative value players looking for ways to buy 7s vs the wings. The same fellow avers that while that is a ...

ObamaCare Redux

Wednesday, November 27th, 2013

The Obama Administration had promised that it would repair the woeful incompetence evident at the roll out of ObamaCare with the malfunctioning website. The promise was that the repaired and rehabilitated sight would handle a load of traffic by November 30. The Administration is hedging its bets on that bold ...