Archive for October, 2013
Wednesday, October 30th, 2013
The bond market is ensconced in a tight range with $29 billion 7 years in for the bid at 100PM NY time. The long end of the market trades as though it has social disease with 5s/30s now 235.4. That is misleading because there is a roll into the new ...
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Wednesday, October 30th, 2013
In MBS space 3s are a tad tighter and 4 1/2s a tad wider. One dealer reports that investors are unwinding defensive positions. He noted that in the carnage of May through July the street lacked the capacity to take down alot of those trades there is a similar experience ...
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Wednesday, October 30th, 2013
Prices of Treasury coupon securities are marching higher in overnight trading as sweetness and light reigns globally. Interest rates are lower in most major markets and equity markets have registered advances in most major markets. So life is very good. Dealers have reported end user buying in the belly of ...
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Tuesday, October 29th, 2013
The Obama Administration is taking serious heat today in the ongoing battle over ObamaCare implementation. The latest brouhaha involves the 19 million or so folks who purchase health insurance as individuals rather than as a part of a group (employer) plan. Many of those policies are bare bones catastrophe protection ...
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Tuesday, October 29th, 2013
Rand Paul is the somewhat sensible son of quirky former Congressman and Presidential candidate Ron Paul. Paul is considered a serious contender for the GOP nod to arm wrestle with Hilary Clinton in 2016. Senator Paul earlier today confirmed that he would place a hold on the nomination of Janet ...
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Tuesday, October 29th, 2013
The Treasury successfully auctioned $35 billion of 5 year notes today. There was robust demand for the issue and the issue performed well on the curve. The issue outperformed 2s and 10s by about 3.5 basis points and closed near key resistance versus Long Bonds. That 5s 30s spread (using ...
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Tuesday, October 29th, 2013
Good morning. Economic data released today validates the belief that the economy is losing some of its forward momentum. One can not employ the R word but the data is less robust than previously. The key question will be whether or not the data remains weak or if the softness ...
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Tuesday, October 29th, 2013
It was a very quiet evening for benchmark US Treasuries and they are posting just marginal gains this morning. Against that background dealers report real money buyers in the 5 year and 10 year sector. Central banks bought T bills and sold one year sector coupons. The credit market maintains ...
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Monday, October 28th, 2013
Tomorrow the Treasury will demonstrate its unquenchable thirst for funding as it issues a brand new 5 year note. The appetite of the bureaucrats and apparatchiks is gargantuan as they will raise $35 billion in funds via the auction. That follows a $32 billion 2year note auction today and a ...
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Monday, October 28th, 2013
I wrote this morning that I thought long the belly of the Treasury market was a crowded trade. So I decided that I would scout around and see what participants think is crowded elsewhere.
In FX the consensus I found was that short the dollar is the position du jour. The ...
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