Archive for December, 2013
Friday, December 13th, 2013
The Treasury market is better bid this morning and yields are gliding slightly lower. The yield curve is flatter with 10s 30s inside of 101 (was 102.4 when I wrote early this morning) and 5s 30s is 234.7 (that was 236.2 earlier). Dealers report better buying in the long end ...
Posted in Uncategorized | Comments Off on Update
Friday, December 13th, 2013
Bloomberg carried an interesting story (to me) this morning on the option skew on Treasury ETFs. According to the story puts on those ETFs are as rich as they have been since 2009.
Very Long and Via Bloomberg:
Treasury ETF Bets Turn Most Bearish Since March 2009: Options
2013-12-13 10:26:45.829 GMT
(For an Options ...
Posted in Uncategorized | Comments Off on Skew
Friday, December 13th, 2013
Prices of Treasury coupon securities have posted modest losses in a mostly featureless overnight session. In reviewing the news it appears that there was no meaningful economic data overnight. The most significant news would then be the cratering of the yen which touched a multi year low at 103.92. The ...
Posted in Uncategorized | Comments Off on Opening Comments for Triskaidekaphobiacs (December 13 2013)
Thursday, December 12th, 2013
I posted this yesterday and I did because it reminded me of this post at a Language blog at the University of Pennsylvania. It is a visual aid on when to use a comma.
Posted in Uncategorized | Comments Off on More Very Dry Comma Humor
Thursday, December 12th, 2013
Cisco stock has been a real disappointment and has lagged its peers for most of the year. When it recently released earning it issued revenue and earnings warnings and the CEO did so again today at an analyst conference. The salient point to note is that he specifically cited weakness ...
Posted in Uncategorized | Comments Off on CSCO Warning
Thursday, December 12th, 2013
I posted yesterday and again this morning on the conversation surrounding the possibility that the Open Market Desk might employ reverse repos (matched sales in my day) as a policy tool. A reader commented on one of my posts and referred me to the blog of Scott Skyrm who writes ...
Posted in Uncategorized | Comments Off on Money Markets and Repo Redux
Thursday, December 12th, 2013
Merrill Lynch Pierce Fenner and Smith on mutual fund flows:
Flows pause. Flows into bond and stock funds paused as the markets ended the week (Tuesday to Wednesday) at roughly unchanged levels despite continued volatility. The selloff in both bonds and stocks on the other hand resulted in outflows last week. ...
Posted in Uncategorized | Comments Off on Flow of Funds
Thursday, December 12th, 2013
Here is an excerpt from a note to clients by private forecasting firm ActionEconomics.After digesting the economic data released this morning the firm has raised its estimate of Q4 GDP to 2.2 from 1.5. The reason for the hike is the stronger consumption manifested by the robust retail sales report.
Via ...
Posted in Uncategorized | Comments Off on GDP Forecast Hike
Thursday, December 12th, 2013
I just received a note from the ubiquitous Mr A. Trader Said regarding the front end. The good news he reports is that central banks are better buyers off off run 2 year and 3 year paper. Hedge funds are wading into the 4 year sector and asset swapping that ...
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Thursday, December 12th, 2013
Mortgages opened a couple ticks wider and are back to unchanged.
The Treasury will announce some new supply today for auction next week. it is the usual complement of 2s 5s and 7s. Each auction should be the same as last month at $32 billion, $35 billion and $29 billion,chronologically. They ...
Posted in Uncategorized | Comments Off on Miscellany