Archive for September, 2014

FX

Tuesday, September 30th, 2014

Via Marc Chandler at Brown Brothers Harriman: Dollar Up on Disappointing Euro Area and Japanese Data - The market is particularly sensitive to developments that could spur a strong policy response at the ECB's meeting on Thursday – today’s CPI figures, for example - The euro drew little comfort from the constructive ...

September 30 2014 Opening

Tuesday, September 30th, 2014

Prices of Treasury coupon securities have posted chunky losses in overnight trading and reversed a smidgeon of the recent pronounced curve flattening. I can not pin point the proximate cause of the decline in prices and would attribute it to position squaring in advance of the quarter end. There is ...

GOP Odds of Taking Senate Increasing

Monday, September 29th, 2014

There is just a little more than a month left until the midterm election and leading modelers have tweaked their models and have declared that the odds are increasing that Harry Reid will lose his job as Majority Leader of the Senate. Polling results have recently turned favorable for the ...

Hong Kong Deadline

Monday, September 29th, 2014

The civil disobedience movement in Hong Kong which is fighting the Communist central government for the democracy which that central government promised when the UK ceded control to China in 1997 has demanded that the government meet their demands for genuine democracy and they have called for the resignation of ...

Regarding Negative T Bill Rates

Monday, September 29th, 2014

Via FT:   Last updated: September 29, 2014 4:47 pm Fed ‘repo’ tests drive scramble for safety By Michael Mackenzie and Tracy Alloway in New YorkAuthor alerts Investors are scrambling for safe assets ahead of the end of the financial quarter, with the scrum for securities exacerbated by the Federal Reserve’s testing of a key ...

Corporate Bond Issuance Today: Nada

Monday, September 29th, 2014

Via Bloomberg: IG CREDIT: No Deals to Price Today; 2 Expected Tomorrow 2014-09-29 18:00:57.393 GMT By Lisa Loray Sept. 29 (Bloomberg) -- No deals are expected to price today, while 2 have been added to tomorrow’s calendar. * After tomorrow’s issuance, Sept. will be the most active month YTD * To Price Tomorrow * Dexia Credit Local (DEXGRP) $bench ...

End of Day Thoughts

Monday, September 29th, 2014

Via Richard Gilhooly at TDSecurities: The Treasury market rallied strongly from about 5am until 9am NYT, driven by weakness in global equities that appeared to stem from political unrest in Hong Kong and a resulting slump in HSI. The remainder of the day saw yields edge slightly higher as US equities ...

What to Watch for Overnight

Monday, September 29th, 2014

Via Robert Sinche at Pierpont Securities: CHINA: The final September reading for the HSBC/Markit Manufacturing index is due, with the preliminary reading of 50.5 a surprise uptick from 50.2 in August. JAPAN: August data for the Jobs Market, Retail Sales, Industrial Production and Labor Cash earnings. The BBerg consensus expects IP to ...

Research Roundup

Monday, September 29th, 2014

Via Blomberg: RESEARCH ROUNDUP: UST Yields, Positioning Views 2014-09-29 16:50:19.767 GMT By Monika Grabek Sept. 29 (Bloomberg) -- Strategist views on UST yields and curve spreads from published research: * BofAML * UST 30Y gains “showing signs of reversal,” as price action in UST 30Y has become more intuitive in September, with positive data surprises spurring selloffs, strategist Shyam Rajan ...

Impact of Turmoil in Hong Kong on HK Economy

Monday, September 29th, 2014

Via the WSJ: Asia News Hong Kong Protests May Hurt Retailers Protests Come at Beginning of Weeklong National Day Holiday in China By Kathy Chu And Joanne Chiu Updated Sept. 29, 2014 9:26 a.m. ET HONG KONG—Tension following clashes at pro-democracy protests is expected to deal a blow to Hong Kong's retail sector during one of the city's ...