Archive for March, 2014
Friday, March 28th, 2014
The swap market is rather quiet this morning and spreads are unchanged to 3/4 basis points wider cross the curve. I have heard of black box types receiving in 5s and 10s and hedge funds paying to and 3s to receive the 7 year point. Not very sexy stuff and ...
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Friday, March 28th, 2014
My corporate bond source reports that secondary market spreads are "violently unchanged"this morning. Clients still have a desire to buy but are in hunkered down mode for quarter end on Monday.
The principal feature of trading yesterday was the multi tranche Bank America deal. The mega bank brought fixed rate tranches ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Friday, March 28th, 2014
Via CRT Capital:
OVERNIGHT FLOWS: Treasuries were under modest pressure overnight, giving back some of yesterday’s gains. Overnight volumes were light with cash trading at 70% of the 10-day moving-average, while TY came in at 78% of norms. 5s were the most active issue, taking a 38% marketshare, while 10s took ...
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Friday, March 28th, 2014
In my opening piece I referred to some of the weak data which printed overnight in Europe. Mark Chandler of Brown Brothers, whose work I regularly feature here, has a comprehensive discussion of that data and its implications for ECB policy in his morning note today.
Via Mark Chandler of Brown ...
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Friday, March 28th, 2014
Prices of Treasury coupon securities are registering modest declines from levels I recorded at 845PM (while watching my alma mater,the University of Dayton, trip up Stanford University in the NCAA) last evening. The yield on the benchmark 10 year note has increased 1.1 basis points to 2.697. The yield curve ...
Posted in Uncategorized | Comments Off on March 28 2014 Opening
Friday, March 28th, 2014
Attached is a Hilsenrath story in the WSJ this morning in which he notes that Federal Reserve officials are discussing the mechanics of raising rates. Will they do it slowly when they begin? Will they continue to target the Federal Funds rate or switch to the new reverse repo facility?
He ...
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Friday, March 28th, 2014
Via CRT Capital:
This week we saw the Fed’s Custody Holdings indicate another strong week of buying at +$56.2 bn vs. +$32.23 bn nearly making up for the -$104.5 bn drop in holdings assumed to be the Russian change of custodians. Agency securities showed their fourth consecutive week of seeing (declines) ...
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Thursday, March 27th, 2014
Federal Reserve Bank of Chicago President Evans is speaking in Hong Kong and sees sees zero funds well into 2015.
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Thursday, March 27th, 2014
BankAmerica Merrill Lynch research has an internal model which tracks debit card and credit card spending. The firm reports that retail sales are accelerating as we move away from the polar vortex but the rate of increase is quite tepid.
Via Merrill Lynch:
Spending continues to thaw slowly. Our weekly internal BAC ...
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Thursday, March 27th, 2014
Via Merrill Lynch Research:
Out of stocks and into bonds. In typical fashion with flows following returns, mutual fund/ETF investors pulled money out of equities and bought bonds as stock sold off and bonds rallied last week (ended March 26th). This contrasts with the previous few weeks when both stock and ...
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