Archive for the ‘Uncategorized’ Category

More FX

Monday, December 12th, 2016

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead The FOMC meeting is the last big event of the year for investors The Bank of England, the Swiss National Bank, and Norway's Norges Bank hold policy meetings; none are likely to alter policy Given last week's ECB ...

Early FX

Monday, December 12th, 2016

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h11f12644,194c4423,194c4424&p1=136122&p2=6126320e1f3ab288c34430954b4a8d32> I do hope there aren't short-covering cannon to the left and the right of this market.... Bloomberg puts the (market-implied) odds of a 25bp Fed rate hike this week at 92% and the odds of a 50bp hike at 8%. It's fair to say that a ...

Japanese Dilemna

Sunday, December 11th, 2016

Via WSJ: By Takashi Nakamichi Updated Dec. 11, 2016 7:43 p.m. ET 2 COMMENTS One of central banking’s most aggressive easers—the Bank of Japan—may soon have to think about tightening for the first time since 2007. The latest buzz in Japanese monetary-policy circles is that the BOJ may have to lift the ...

Good News for Mercedes Benz of Greenwich

Sunday, December 11th, 2016

Via Bloomberg: U.S. Limits on Wall Street Bonuses Appear Doomed Ahead of Trump by Jesse Hamilton and Benjamin Bain December 9, 2016 — 12:59 PM EST December 9, 2016 — 12:59 PM EST Obscure regulator of credit unions said to be hurdle for rules New restrictions clash with Trump pledge to rip up Dodd-Frank For years the ...

Debating the Natural Rate

Sunday, December 11th, 2016

Via the WSJ: By Jason Douglas and Jon Sindreu Dec. 11, 2016 12:17 p.m. ET   In steering their economies, central bankers are guided by a mysterious, hidden interest rate that critics say could be a figment of their imagination. Major central banks across the globe have taken short-term policy rates to record lows ...

Very Long Bonds

Monday, December 5th, 2016

Via Blomberg: Treasury May Extend Maturity Before Ultra Bond Debut: Wrightson 2016-12-05 19:30:14.718 GMT By Alexandra Harris (Bloomberg) -- Treasury can increase 10Y, 30Y auctions while it works out the specifics of 50Y or 70Y offerings to get a head start on extending the average maturity of its debt, Wrightson ICAP economist Lou Crandall says in note. * ...

No Wheelbarrows Needed Here

Monday, December 5th, 2016

An excerpt from the morning note of Chris Low at FTN Financial: Venezuela, whose bold experiment with Bolivaran Socialism has resulted in terrible shortages and such rampant inflation that people have ditched wallets in favor of bags of cash and storekeepers—when they have anything to sell—have taken to weighing notes rather ...

Big Dip Down for Atlanta Fed 4th GDP Forecast

Wednesday, November 30th, 2016

Via FRBAtlanta: Latest forecast: 2.4 percent — November 30, 2016 The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the fourth quarter of 2016 is 2.4 percent on November 30, down from 3.6 percent on November 23. The forecast of the combined contributions of real net exports and ...

GSEs and Incoming Trump Administration

Wednesday, November 30th, 2016

As an aside in another life circa 1990 I worked with Tim Bitsberger. He traded Long Bonds when I traded short coupon Treasuries. I guess I should have kept his name active in the rolex. (No smart phone as I am a modern Luddite!)   Via TDSecurities: PDF: https://www.tdsresearch.com/currency-rates/viewEmailFile.action?eKey=X2CIB9IV8QOADAY3R6SAQL84Z §  The GSEs have been in ...

Ross and Mnuchin Comments

Wednesday, November 30th, 2016

Via Stephen Stanley at Amherst Pierpont Securities: The Treasury market reacted this morning to a very cursory comment by Treasury Secretary nominee Steven Mnuchin that the average maturity of the debt should be extended since interest rates are likely to be low for a few more years.  This comment seems like ...