Archive for February, 2014

Euro Currency Moves

Friday, February 28th, 2014

Via Mark Chandler at Brown Brothers: The euro area inflation news offsets all the other news from the euro area today.  These included a dismal consumer spending report from France (-2.1% in January compared with expectations for +0.2%) and a new record high of Italian unemployment in January (12.9% compared with ...

China Currency Fall

Friday, February 28th, 2014

Here is Bloomberg story on the decline in the Chinese Currency: China’s Yuan Drops Most on Record Amid Band Widening Speculation 2014-02-28 09:03:59.811 GMT By Fion Li and Kyoungwha Kim Feb. 28 (Bloomberg) -- China’s yuan tumbled by the most on record on speculation the central bank will widen the currency’s trading band, allowing greater volatility ...

February 28 2014 Opening

Friday, February 28th, 2014

Prices of Treasury coupon securities have taken a battering in overnight trading and other major fixed income markets are suffering the same fate, too. The yield on the 10 year note is 2.669 percent and that is 1.6 basis points higher than where I marked it at 845PM New York ...

Federal Reserve Hacked

Thursday, February 27th, 2014

Via FT: February 27, 2014 11:55 pm British man charged with hacking Fed computers By James Politi in Washington A British man has been charged in the US with hacking into the Federal Reserve’s computer system and stealing confidential information about staff, in a case that could raise alarm bells about the central bank’s ...

Verbal Gaffe

Thursday, February 27th, 2014

There is a special election in Florida to fill the seat of a Congressman who died. The contest is attracting quite a bit of intention as some want to make it a bit of a proxy for the electoral sentiment as we advance in the 2014 off year election. The ...

Deja Vu All Over Again

Thursday, February 27th, 2014

I thought this article from the FT regarding some steamy valuations of Tesla and the WhatsApp purchase by Facebook was a good reminder of the late 1990s. As an aside I was in the big city today and while in the back of a cab (and this is not apocryphal) ...

Seven Year Note Result

Thursday, February 27th, 2014

Via CRT: * A strong takedown with non-dealers awarded 65.7% vs. 59% norms and a 0.3 bp stop-through. *** * 7-year auction stops at 2.105% vs. 2.108% 1pm bid WI. * Dealers were awarded 34.3% vs. 41% average of last four 7-year auctions. * Indirects get 41.1% vs. 40% norm. * Directs take 24.6% vs. ...

Seven Year Note Revisited

Thursday, February 27th, 2014

I am operating away from Across the Curve's sprawling global headquarters today so that is why I am posting all these short pieces. I want to reiterate one point. Traders are writing that the the 7 year note has richened on the curve and along with the absolute level of rates ...

MBS

Thursday, February 27th, 2014

FNMA 3s lag Treasuries by about three ticks whilst 5s are unchanged. The up in coupon trade dominates and in general flows are light/

CRT on Seven Year Note Outlook

Thursday, February 27th, 2014

Via Ian Lyngen of CRT Capital: • 7-year auctions have recently met soft receptions with only one stop-through since June and that was January’s modest 0.2 bp. Tails have averaged 0.9 bp and we saw on-the-screws stops in July and October. • Indirect bidding has been decreasing at 7s recently, taking 40% ...