Archive for November, 2013
Tuesday, November 12th, 2013
Prices of Treasury coupon securities sagged today as uncertainty about the near term course of monetary policy and supply from the Treasury weighed on sentiment. In conversations with dealers and investors I sense that many who believed that tapering was a March/ June 2014 event have recalibrated and are now ...
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Tuesday, November 12th, 2013
The US Treasury rattled the cup at 100PM New York time and the result was rather pedestrian. The auction came at 0.644 percent which was through the 100PM bid side of 0.645. Awards to dealers as well as indirect and direct bids were close to recent averages. I still think ...
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Tuesday, November 12th, 2013
Mortgages are mixed today with current coupon and higher coupons outperforming swaps while 4s and 4 1/2s are lagging. The current coupon is better than swaps by about 1 1/2 ticks. Dealers report money manager buying and very light supply from originators.
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Tuesday, November 12th, 2013
Here is a list from earlier today (courtesy of the good folks at Bloomberg) of corporate supply announced today. This is slightly aged so there might be more since I received this.
Williams Partners LP B'Mark Baa2/BBB 2 part 10 & 30 yr
3 & 6 mo par calls respectively prior
ipt 10 ...
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Tuesday, November 12th, 2013
There was a Hilsenrath article overnight in the WSJ. I think that it was underwhelming and does not add to our store of knowledge on the near term course of interest rates. Mr Hilsenrath ruminates on whether Ms Yellen will run the Federal Reserve like the Vatican (with no dissents ...
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Tuesday, November 12th, 2013
The only client flow I have heard of in the overnight session is end users out of Asia selling the Long End of the Treasury market.
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Tuesday, November 12th, 2013
I thought this was humorous. The Communist Party in China completed several days of meetings and in its headline reporting on the communique released at the end of the meeting the Wall Street Journal captioned the story this way:
China Pledges Greater Role for Market in Economy
If someone in the Democrat ...
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Tuesday, November 12th, 2013
Prices of Treasury coupon securities have tumbled in overseas trading as a confluence of events augurs for higher rates,at least in the very short term myopic time frame in which traders operate. This week is refunding week which kicks off today with an auction of $30 billion three year notes. ...
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Monday, November 11th, 2013
Over the weekend the talks between Iran and several other countries broke down. I subscribe to Stratfor and that private intelligence service says that the talks have not broken down but have been delayed and will resume on November 19. Stratfor says there has been significant progress in the talks ...
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Monday, November 11th, 2013
Here is an interesting excerpt from Bank America Merrill Lynch on credit spreads. The firm conducted a client survey and clients believed that credit spreads, and especially high yield spreads, were overvalued. Notwithstanding that the same investors blithely and cavalierly posited tighter spreads over the next three to six months. ...
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