Archive for January, 2014
Thursday, January 23rd, 2014
Spain sold a record amount of 10 year bonds yesterday with robust demand from overseas investors. Here is an FT story about the sale and some brief commentary from a long time reader who sent the heads up. The FT story does something which always makes me chuckle and which ...
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Wednesday, January 22nd, 2014
I have several times mentioned the soon to be announced and issued 2 year FRN from the US Treasury. Attached is a comprehensive research note by Gennadiy Goldberg at TD Securities. I think he covers the instrument very well in this analysis.
Via TD Securities:
TD Rates, FX & Commodities Research
Today at ...
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Wednesday, January 22nd, 2014
I was just checking the extent of the carnage in the belly of the curve since the FOMC proclaimed The Taper in middle December. On December 18th the 5 year 10 year spread was 135 basis points and currently resides at 116 basis points. The 5 year 30 year spread ...
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Wednesday, January 22nd, 2014
IBM printed disappointing results last evening as revenues declined for the seventh consecutive quarter. As a result the stock is off about $7. That dollar price move receives inordinate weight in the Dow Industrials and is worth somewhere between 45 and 50 Dow points.
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Wednesday, January 22nd, 2014
This is an interesting article from Barron's which chronicles the very low level of volatility in the bond market.
Via Barron's :
January 22, 2014, 10:29 A.M. ET
Bond Breakout Could Be ‘Violent’: Ned Davis Research
By Brendan Conway
Is there something disquieting about the sudden good feeling in the bond market? Joe Kalish of ...
Posted in Uncategorized | Comments Off on Bond Vol
Wednesday, January 22nd, 2014
This is TD Securities take on the Bank of Canada statement today:
Bank of Canada is as Dovish as Possible Short of an Easing Bias
The Bank of Canada left the overnight rate unchanged at 1.00%. The accompanying communiqué displayed some pockets of optimism but maintained a very dovish tone focused on ...
Posted in Uncategorized | Comments Off on Oh Canada
Wednesday, January 22nd, 2014
The market for secondary paper is a little softer today. One participant note that the 10s and 30s from the JPM mega deal yesterday are trading 3 basis points to 5 basis points cheaper than pricing. My source noted that Bank America and GE and Morgan Stanley have also brought ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Wednesday, January 22nd, 2014
I wrote briefly about the new 2 year FRN which the Treasury will auction next week. Here is a detailed look at the issue via Bloomberg.
Via Bloomberg:
By Alexandra Harris
Jan. 22 (Bloomberg) -- Discount margin for Treasury’s Jan.
29 2Y FRN auction will be near 10bps given small issue size and
“various” demand ...
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Wednesday, January 22nd, 2014
One futures salesman with whom I converse put out a note which states that the last bastion of belief in easy finding from the Fed is the 1 year to 2 year part of the Eurodollar curve. He states that hedge funds via options trades are challenging that belief.
As I ...
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Wednesday, January 22nd, 2014
The Treasury market is once again a pretty quiet place. I have heard of hedge fund sellers in the 5 year sector and real money and hedge fund payers in swaps. Once again it looks as though there is a reasonable amount of corporate issuance today and machinations at pricing ...
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