Flows
Thursday, January 30th, 2014I did not have much client flow information earlier. Trading accounts were sellers of 2 year notes and there was some Japanese buyers of 10s. I will add more when I receive it.
Archive for January, 2014
I did not have much client flow information earlier. Trading accounts were sellers of 2 year notes and there was some Japanese buyers of 10s. I will add more when I receive it.
January 30 2014 Opening
Thursday, January 30th, 2014Prices of Treasury coupon securities are registering very modest losses in overnight trading. The extent of the losses is minimal and therefore impressive as the market faces a daunting task today as jack Lew and his minions will auction both 5 year notes and 7 year notes today. In the ...
Corporate Bond Allocations:
Wednesday, January 29th, 2014Allocations to corporate bonds are at their highest level in nearly 15 years. This via Bloomberg: RATES: Corporate Allocations Highest Since Aug. 1999, SMR Says 2014-01-29 18:20:13.345 GMT By Monika Grabek Jan. 29 (Bloomberg) -- SMR Portfolio Manager survey participants shows corporate allocations at highest level since August 1999; “participants appear to be waiting out current crisis in ...
Treasury Update
Wednesday, January 29th, 2014Treasury market has exploded and breached resistance at 100-12+ on 10s and is sustaining trading well above that level. The yield curve has flattened post the FOMC with 5s 10s early 2 basis points flatter (117.8 now vs 119.6 at about 135PM). Similarly 5s 30s is exactly 2 basis points flatter ...
Corporate Bonds
Wednesday, January 29th, 2014Corporate bond spreads are feeling a tad squishy today and have leaked wider. Industrials are one basis point wider while TMT, bank and finance and utilities and energy were each 2 basis points to 3 basis points wider. My main source on this sector said that it has actually been ...
Post FOMC Thoughts
Wednesday, January 29th, 2014The statement seemed pretty much according to script and there were no dissents. The reaction in bond market is muted at the moment and I think that we are in the hands of the equity jockeys. If equity market continues to crater then bonds will develop a bid and we ...
Approaching FOMC
Wednesday, January 29th, 2014The 10 year note has pierced the 100-12+ level I wrote of earlier. it traded to 100-14 but quickly retreated. So that battle still rages. I have just completed conversations with several market makers regarding the resting position in the street as we await the FOMC announcement. It was a small ...
Swap Market
Wednesday, January 29th, 2014Swap spreads in belly of the curve are about 1 basis point wider today. The level of activity is muted as clients wait for the FOMC demarche later today. In January heavy corporate issuance supported the market as much of that issuance was swapped and as the level of issuance ...
Treasury Market Update
Wednesday, January 29th, 2014South Africa unexpectedly raised rates and equities cratered. The 10 year note rests at a critical level as 100-12+ is last week's high price and the highest price of this localized cycle. The Lira broke through the 2.25 level which is where it traded prior to central bank announcement and ...
Yield Curve Agonies
Wednesday, January 29th, 2014The 5s 30s curve continues to steepen it is just a shade under 215 basis points. When I wrote my opening piece I marked it at 213. One dealer thought that it felt like a bit of a sentiment shift in that emerging market weakness and equity weakness and maybe ...