Archive for February, 2014
Thursday, February 27th, 2014
I am hearing that fast money types are ringing the register on profitable positions from 5 year note auction yesterday. Real money has nibbled on the long end. One trader thought that at these levels the seven year note auction might see a tail.
Posted in Uncategorized | Comments Off on Treasury Flows
Thursday, February 27th, 2014
Swap spreads began the day as much as 3/4 basis point wider but have returned to unchanged to maybe 1/4 wider. Some of the recovery is related to corporate issuance and some of it is just catch up in the sense that when the market runs as it did this ...
Posted in Uncategorized | Comments Off on Swap Spreads
Thursday, February 27th, 2014
Via Bloomberg:
02-26-14
Japan Finance Org. For Municipalities 1 bln Aa3/AA- 5 yr
final spred ms +57
GATX Corp 750mm Baa2/BBB 3 part 3, 5.5, & 30 yr
6 mo par call prior on 30 yr
ipt 3 yr +80
5.5 yr +125
30 yr +High 100
all area
Kinross Gold Corporation 350mm Baa3/BBB- 10 yr 144A W/Reg /Rts ...
Posted in Uncategorized | Comments Off on Corporate Bonds Thus Far
Thursday, February 27th, 2014
Via Pierpont Securities' Stephen Stanley:
The January durable goods orders report was very close to my expectations. A sharp drop in civilian aircraft bookings, as signaled by the Boeing data, drove a small decline (-1.0%) in the headline figure. Excluding defense and aircraft, durable goods orders slipped by 0.3%, a little ...
Posted in Uncategorized | Comments Off on Review of Economic Data Via Pierpont Securities
Thursday, February 27th, 2014
One of my former colleagues commented this morning on the increase in open interest in the note contracts and bond contracts at the CBOT. He describes the increase as being of Biblical proportions and reflects some massive buying. He argues that participants entered the year short and held an optimistic ...
Posted in Uncategorized | Comments Off on Morning Market Musings
Thursday, February 27th, 2014
The Crimea Parliament has called for a referendum on that region's future.
Posted in Uncategorized | Comments Off on Crimea Referendum
Thursday, February 27th, 2014
Stratfor has quite a bit of news on the escalating tensions in Ukraine and this short piece is the most ominous as it reports movements of Ukraine security forces to intercept Russian troops. I believe this story is about four hours old.
Via Stratfor:
Personnel from the Security Service of Ukraine on ...
Posted in Uncategorized | Comments Off on Stratfor on Ukraine
Thursday, February 27th, 2014
Prices of Treasury coupon securities are posting solid gains in overnight trading as the risk off trade is ascendant. The proximate cause of the flight to quality is increased turmoil in the Ukraine. I do not know the detailed history of the Ukraine but apparently the Crimea region is pro ...
Posted in Uncategorized | 4 Comments »
Wednesday, February 26th, 2014
Last night I posted this Merrill Lynch note which intimated that their internal tracking model showed improved consumer spending. In today's note they state that the increase in spending which accompanied the warm weather is disappointing.
Via Merrill Lynch:
Weather 1, retail sales 0. Our internal BAC card (debit+credit) retail ex. gas ...
Posted in Uncategorized | Comments Off on Merrill Lynch Once Again on Consumer Spending and Weather
Wednesday, February 26th, 2014
The Treasury market continues to make the shorts in the belly of the curve howl and the market is finishing the day well bid and at the best levels of the day. The 5 year point has been a superstar over the course of the afternoon. For example the 2 ...
Posted in Uncategorized | 1 Comment »