Archive for November, 2013

Yellen Nomination

Monday, November 11th, 2013

Senator Lindsay Graham has engaged in a long running dispute with the Obama Administration regarding the murder of four American diplomats in Libya at the height of the Presidential campaign. Senator Graham believes that there has never been to this date an open airing of the facts associated with that ...

ObamaCare Roll Out

Monday, November 11th, 2013

The Obama Administration should certainly suffer the slings and arrows of outrageous fortune for the manner in which it has launched ObamaCare. Even if you are a supporter of the basic law ( which I am not)  I have other issues. The government has a competency issue. The customer facing ...

The Doctors and Dentists are In

Sunday, November 10th, 2013

When I first sat down in the trading room at Chase Manhattan Bank in May 1981 I can recall hearing guys yelling out that the Doctors and the Dentists were in. In the cavernous canyons of lower Manhattan in those days there were no regular people and the financial firms ...

Soc Gen On China Weekend Data

Sunday, November 10th, 2013

Here is some local based analysis of weekend data out of China via Soc Gen: Eco Analysis - China's growth momentum held up in Q4 (3p) The biggest surprise from China's weekend data release was the strength of industrial production. However, fixed asset investment growth - which statistically leads GDP growth - ...

Oh Canada

Sunday, November 10th, 2013

My former employer before a very amicable parting and retirement was TD Securities. I think in my nearly four years with that fine institution I visited Toronto three times. So the opening of the FT article which I will append to this posting resonates with me. When one made the ...

Random Musings

Friday, November 8th, 2013

One trader just mentioned to me that there is story making the rounds that the movement in Treasuries is so large that the ETF people need to rebalance and that might motivate some late in the day selling. Swap spreads counterintuitively are about 1/4 basis point tighter today. The best explanation ...

Treasury Market Flows

Friday, November 8th, 2013

The Treasury market has gotten smoked following the robust labor data this morning. The yields on the 5 year, 10 year and 30 year bond have vaulted 9 basis points,12 basis points and 10 basis points respectively. The 5 year/10 year spread is make cycle highs while the 10 year ...

Early Thoughts

Friday, November 8th, 2013

Blogging will be light early in day as life intervenes. I wonder if 2.75 will hold on 10s. That will be interesting level to defend. Belly of the curve getting crushed. The 5s 10s 30s spread looks to be around 23.  I think I clocked that yesterday around 18.   And participation rate dropped ...

Bubbles Everywhere

Friday, November 8th, 2013

Liberty Street Economics is the blog of the Federal Reserve Bank of New York. The most recent post at that blog is an interesting (to me) piece of history on the South Sea Bubble in the 18th century. One of the cause of that bubble was some 18th century deal ...

November 08 2013 Opening

Friday, November 8th, 2013

Prices of Treasury coupon securities have registered modest losses in overseas trading. Dealers report a narrow range bur active trading volume within that narrow range. The US equity market is having a reflexive bounce (S and P futures 4.00 higher as I write) but European equities are mostly in the ...