Archive for January, 2014

Spanish Ten Year

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 ...

More On the Coming Treasury 2 Year FRN

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 ...

Yield Curve Musings

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 ...

IBM Moves Dow

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.

Bond Vol

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 ...

Oh Canada

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 ...

Corporate Bonds

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 ...

Treasury 2 Year FRN

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 ...

Hedge Funds and EuroDollars Options and Easy Money

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 ...

Update

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 ...