Archive for the ‘Uncategorized’ Category

Ten Year Tips Auction Today

Thursday, November 17th, 2016

Ian Lyngen and Aaron Kohli of BMO Capital Markets produce an informative piece each morning on the fixed income markets. I have excerpted from today's piece thier comments on today auction of 10 year TIPS:     The 10yr TIPS reopening also looms large on Thursday and though we’re not particularly enthused ...

Tulip Mania

Thursday, November 17th, 2016

Via Barron's: Ahead of the Crowd What to Do With a Stock Up 1,000% in One Week? DryShips is a prime example of what can happen when investors let politics get ahead of fundamentals. By Jack Hough Nov. 16, 2016 3:11 p.m. ET Careful with those Trump trades. DryShips shares (ticker: DRYS) have been halted after they closed ...

Hey Abbot

Thursday, November 17th, 2016

Via Bloomberg: CREDIT MORNING CALL: Expect the Biggest Issuance in a Month 2016-11-17 11:53:30.775 GMT By Robert Elson (Bloomberg) -- Expectations surrounding a hefty Abbott M&A- deal leave the market thinking today may be the largest session since October 19, Bloomberg strategist Robert Elson writes. That day saw Saudi Arabia pricing $17.5b with WFC, MS, UPS, MDLZ bringing ...

Big Firms Hype TIPS

Thursday, November 17th, 2016

Via Bloomberg: November 16, 2016 — 6:42 PM EST Updated on November 17, 2016 — 6:14 AM EST U.S. selling $11 billion of 10-year inflation-linked debt TIPS returns in 2016 more than double regular Treasuries The roster of firms lining up to recommend Treasury Inflation Protected Securities before a sale ...

FX

Thursday, November 17th, 2016

Via Marc Chandler at Brown Brothers Harriman: Consolidation Gives Dollar Heavier Tone The US dollar is trading with a heavier bias today as its recent run is consolidated The UK reported a huge jump in retail sales; Australia reported October jobs data overnight The US data calendar features the October ...

Treasury Market Musings

Thursday, November 17th, 2016

In overnight trading the BOJ action to stem the rise in yields was the highlight. The central bank intervened and promised to buy both 2 year and 5 year bonds. Dealers report that in overnight trading yen funded buyers were better buyers of 5 year through 30 year sectors. In the ...

Credit Pipeline

Thursday, November 17th, 2016

Via Bloomberg: IG CREDIT: Volume Remains High; Issuance Will Be Focus Today 2016-11-17 10:41:48.24 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $19.2b vs $20.3b Tuesday, $20.2b last Wednesday. * 14th highest of any Wednesday since Nov. 2005 when TRACE volume count began * Tuesday’s $20.3b was 5th highest Tuesday on ...

Some Corporate Bond Stuff

Thursday, November 17th, 2016

Via Bloomberg: IG CREDIT: Volume Remains High; Issuance Will Be Focus Today 2016-11-17 10:41:48.24 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $19.2b vs $20.3b Tuesday, $20.2b last Wednesday. * 14th highest of any Wednesday since Nov. 2005 when TRACE volume count began * Tuesday’s $20.3b was 5th highest Tuesday on ...

BOJ Fires Warning Shot at Bond Bears

Thursday, November 17th, 2016

Via Bloomberg: Benchmark yields had climbed at fastest pace since August 10-year touched 0.035%, the first time since mid-February The Bank of Japan fired a warning shot at the government bond market Thursday, announcing its first offer to buy an unlimited amount of securities to maintain its yield-curve target. The so-called fixed-rate operation ...

Trump Advisers Favor Shrinking Fed Balance Sheet

Wednesday, November 16th, 2016

Via Bloomberg: Trump Allies Urge Fed to Cut Balance Sheet and Revive Credit (1) 2016-11-16 12:27:08.216 GMT By Rich Miller (Bloomberg) -- Bond investors may have another reason to worry after Donald Trump’s election last week: Some of his allies are not fans of the Federal Reserve’s big balance sheet of bonds and want the central bank ...