Archive for January, 2014

Distended Belly

Wednesday, January 22nd, 2014

One fully paid up subscriber notes the continued weakness in the belly of the curve. I do not pay too much attention to butterflies which contain the 2 year note because the 2 year note is essentially pinned by the zero bound and the belief that the Fed will not ...

Possible Default in China

Wednesday, January 22nd, 2014

I spoke with a portfolio manager I know regarding where his focus and concerns were currently. He brought up a topic I have only read about tangentially and that is the possibility of a default by the China Credit Trust on January 31. ICBC (the world's largest bank by assets) ...

FX Expirations Today

Wednesday, January 22nd, 2014

{EU} in EURUSD there are about 1.5bn rolling off between 1.3550-1.3600 with the bulk at those 2 levels (500 at 1.3550 and 400 at 1.3600) there are also about 1.25bn at 1.3650 (see attached) {JN} there are +750 at 104.15 with ~1.9bn at 103.60 and 250mln at 104.50 {GB} ntg terribly cloes ...

Corporate Supply

Wednesday, January 22nd, 2014

known for today - ADB Aaa/AAA, 5Y with guidance set at MS +6, via managers C/HSBC/MS/RBC CADES Aaa/AAA, 144A/Reg-S 3Y, MS +23-25 guidance, via BofAML/Barc/DB/HSBC EIB Aaa/AAA, Global 10Y, spread set at MS +35, via Barc/DB/GS Republic of Turkey (TURKEY) Baa3/na/BBB- 10Y  IPT 6%area  C/HSBC/MS

Cleaner Presentation of JPMorgan Survey

Wednesday, January 22nd, 2014

RATES: Both Longs and Shorts Fall in Latest JPM Survey 7:29 The JPMorgan Treasury Client Survey for the week ended Jan 21 vs week ended Jan 13. • Longs at 17 vs 19 • Neutrals 68 vs 64 • Shorts 15 vs 17 • Net Longs at 2, unchanged • "The all clients survey shows the ...

JPM Survey via Bloomberg

Wednesday, January 22nd, 2014

  I apologize for the presentation as it would not cut and paste properly.  

Overnight Volume

Wednesday, January 22nd, 2014

David Ader of CRT Capital in his morning note to clients points out that it was an active overnight session as volume in the broker market was 149 percent of the 10 day moving average.

January 22 2014 Opening

Wednesday, January 22nd, 2014

Prices of Treasury coupon securities have declined in overseas trading as economic data precipitated a round of selling in diverse global venues. In  Australia the quarterly inflation report jolted markets as the trimmed mean core gauge of inflation printed at 2.6 percent in Q4, exceeding forecasts of 2.3. I am ...

Treasury Market Close

Tuesday, January 21st, 2014

The bond market finished a very quiet session with very little change though the Long Bond did close at levels last observed in 2013. As testimony to the light volumes dealers report that volume today was 67 percent of the ten day moving average. There was real money buying in ...

Cash is King

Tuesday, January 21st, 2014

Via the FT an excellent article on the cash hoard held by corporations. Huge cash pile puts recovery in hands of the few By Anousha Sakoui, M&A Correspondent The pile of unspent corporate cash that has built up since the start of the financial crisis is being held by an increasingly concentrated pool ...