Archive for December, 2013
Tuesday, December 3rd, 2013
The 5 year Starbucks deal upon which I heaped contumely and scorn less than twenty four hours ago because of its pricing is even richer. I will confess I dont know the exact pricing level but it launched at 63 and I suspect it priced there and is trading 60/56 ...
Posted in Uncategorized | Comments Off on Mid Morning Miscellany
Tuesday, December 3rd, 2013
There are several disparate factors at work currently in the markets that I think should give one pause regarding near term market movements. In my opinion there is a calm before the storm mentality which reminds me of last April before the hideous carnage which wrecked bonus pools in the ...
Posted in Uncategorized | Comments Off on Searching for a Canary in the Coal Mine
Tuesday, December 3rd, 2013
Dollar yen traded to nearly 103.40 in overnight trading. That is a new level of weakness for the yen in this cycle. It has since retreated and now trades around 102.60. I am not a technician nor do I pretend to be but I was around enough of them for ...
Posted in Uncategorized | Comments Off on FX Thought
Tuesday, December 3rd, 2013
Prices of Treasury coupon securities are registering small mixed changes in an especially quiet overnight session. Dealers report that volume in Treasury market was extremely light and cite the waiting for Godot experience of waiting for a labor report number on Friday that many deem more important than normal. I ...
Posted in Uncategorized | Comments Off on December 03 2013 Opening
Tuesday, December 3rd, 2013
Politico.com reports that Congressman Ryan and Senator Murray are advancing towards a deal to avoid another government shutdown. The deal would cover two fiscal years and would set spending above levels GOP prefers and below levels Democrats would favor (infinity?) . The deal would also raise revenues via pension reform, ...
Posted in Uncategorized | Comments Off on Ryan/Murray Talks Said To Progress
Monday, December 2nd, 2013
Here is an interesting( to me at least) piece from Bank America Merrill Lynch on volatility, the level of rates and credit spread. The analyst argues recent price action augurs wider spreads.
Via the entity formerly known as Merrill Lynch Pierce Fenner and Smith:
It MOVEs. In case you missed it we ...
Posted in Uncategorized | Comments Off on Volatilty and Credit Spreads
Monday, December 2nd, 2013
Corporate bond spreads remain very tight with the IG 21 sustaining trading between 68 and 70 for a week and a half now. My corporate bond source reports that in his eyes the main theme is spread compression and as a corollary it is very difficult to find value in ...
Posted in Uncategorized | Comments Off on Yield Compression
Monday, December 2nd, 2013
Swap spreads are contained today with mixed changes. One trader with whom I spoke thought that the next trade from here in swap spreads would be a directional trade and that higher rates would motivate paying and wider spreads. He believes that a strong side print on labor might provide ...
Posted in Uncategorized | Comments Off on Swap Spreads
Monday, December 2nd, 2013
I found this via a right wing blogger name Jay Cost on Twitter and it is for those with a very dry sense of humor. The error message at healthcare.gov fails a grammar test.
http://www.propublica.org/images/4-error-message.png
Posted in Uncategorized | Comments Off on Error Message in Error
Monday, December 2nd, 2013
The Treasury market remains under pressure as economic data prints modestly stronger than expected. In an early morning post I noted strength in European PMIs and the PMI in China. That strength continued stateside with a stronger than expected PMI here with key components of the index manifesting strength. The ...
Posted in Uncategorized | Comments Off on Treasury Market Update