Archive for May, 2014
Thursday, May 29th, 2014
Bloomberg reports that the auction tails on the 2s 5s and 7s was the first time that there was a tail for each in the same cycle since July 2012.
Via BLoomberg:
RATES: Trio of Auction Tails Is First Since Mid-2012 Yield Lows
2014-05-29 18:32:11.535 GMT
By Monika Grabek
May 29 (Bloomberg) -- Tails in each of this week’s UST
auctions are the first for the 2Y/5Y/7Y cycle since July 2012,
when benchmark yields reached record lows.
* 0.2bp tail in today’s $29b 7Y auction followed 0.4bp tail in
yday’s $35b 5Y auction and 0.2bp tail in Tuesday’s $31b 2Y
auction, according to Stone & McCarthy
* Trio of tails is first since July 2012, when 2Y, 5Y and 7Y
auctions were awarded at record low yields
* 2Y drew 0.220% on July 24, 2012, 0.1bp tail
* 5Y drew 0.584% on July 25, 2012, 0.9bp tail
* 7Y drew 0.954% on July 26, 2012, 0.4bp tail
* UST yields have declined this week, with 7Y-30Y reaching YTD
lows while shorter maturities touched lowest levels since
March, amid expectations for additional ECB easing next
week, month-end buying and short positioning
* Last trio of tails in 3Y/10Y/30Y cycle was in June 2013,
according to Stone & McCarthy
Posted in Uncategorized | Comments Off on Auction Tails
Thursday, May 29th, 2014
Via CRT Capital
7 stop at 2.01% vs. 2.006% 1PM Bid, so small tail
-- 73.86% alloted at high vs 60.25% norm
-- cover comes to 2.6, right on 2.55 average
-- directs take 24.1% vs. 21.5% average
-- indirects take 40.4% vs. 42.3% average
-- as an aside, decent non comps at 37.89 bn vs. ...
Posted in Uncategorized | Comments Off on Seven Year Result
Thursday, May 29th, 2014
Corporate Bond Spreads remain very firm and unchanged over the last several days. That is a bit of a victory as the Treasury market rally should have widened spreads a tad. 3M is offering 5s and 30s today at very tight spreads. The company is pristine and my main corporate ...
Posted in Uncategorized | 1 Comment »
Thursday, May 29th, 2014
Via CRT Capital:
CRT's 7-year Auction Outlook ...
Posted in Uncategorized | Comments Off on 7 Year Auction Preview
Thursday, May 29th, 2014
The bond market continues its rally unabated with 10 years trading at 2.41 percent this morning. In terms of specifics I have heard of bank portfolio buying in the 4 year part of the Treasury curve. In the bigger picture I think the simple theme is that there is a ...
Posted in Uncategorized | Comments Off on Treasury Market Update
Thursday, May 29th, 2014
Mortgages are 1 tick to 2 ticks wider this morning. There was some late origination selling which polluted the environment and that has carried over this morning. One dealer in his note thought that the Fed purchases would clean up any residual bonds from that sale. He also thought that ...
Posted in Uncategorized | Comments Off on MBS
Thursday, May 29th, 2014
Via Bloomberg:
* 8:30am: Fed’s Pianalto gives opening remarks at conference
entitled, “Inflation, Monetary Policy and the Public”
* 9:30pm: Fed’s George speaks at Stanford
Posted in Uncategorized | Comments Off on Fedspeak Today
Thursday, May 29th, 2014
Via mark Chandler at Brown Brothers Harriman:
he Great Bond Conundrum is unlikely to be resolved today, but the global capital markets appear to be taking a pause, helped in part by the Ascension Day holiday that has thinned activity in Europe. The attempt to extend the euro and sterling's recent ...
Posted in Uncategorized | Comments Off on FX
Thursday, May 29th, 2014
Via CRT:
OVERNIGHT FLOWS: The market is bid, again, with 7s of all things the best performer as the strength edges down the curve. The US continues to improve against Bunds with the spread of 109 bp the narrowest in a few weeks and, perhaps we think, heavily influenced by the ...
Posted in Uncategorized | Comments Off on Overnight Flows
Thursday, May 29th, 2014
Prices of Treasury coupon securities continued to rally in overseas trading. I have not received any dealer notes yet on client flows but I suspect volume was light as today is Ascension Thursday and much of Europe is closed for that holiday. Against that background the yield on the 10 ...
Posted in Uncategorized | Comments Off on May 29 2014 Opening