Archive for January, 2014

Treasury Market Update

Tuesday, January 21st, 2014

The Treasury market has recovered from the overnight sell of and the 10 year note has returned just about to levels which prevailed in late trading Friday. As the market recovered the curve has steepened from levels which prevailed at the opening. So 5s 10s at 119.3 is 0.7 steeper ...

MBS

Tuesday, January 21st, 2014

There is not alot to say about MBS. There is not much supply and the Federal Reserve and end users are buyers. Consequently, spreads on 3.5s and 4.0s are 1 tick to 1+ ticks tighter to Treasuries. Higher Coupons are better by just a +. As I make the rounds to ...

Swaps

Tuesday, January 21st, 2014

Swap spreads are tighter by about 1/2 basis point this morning. The dominant factor in that market is corporate issuance and particularly issuance by financial names. As always traders expect those companies to receive at pricing and that has kept spreads on the narrow side. One portfolio manager with whom ...

Dow Price Movement

Tuesday, January 21st, 2014

The Dow Jones Industrial Average is down 113 points as I compose this electronic missive. A very large chunk of that is concentrated in the movement of five stocks. One little caveat here. The 113 points I cited is live while the levels I am about to present are lagged ...

JPM Price Talk

Tuesday, January 21st, 2014

JPM ipt's 5YR FRN  L EQUIV 5YR FXD  +75A 10YR FXD  +115A 30YR FXD  +115A   For the uninitiated IPT  is initial price talk. The capital A means Area. So the initial talk on the 10s and 30s is +115 area which gives the underwriters leeway to adjust the spread as they see what kind of ...

More Corporates from JPM

Tuesday, January 21st, 2014

I guess they want to get done before the snow.   $b  J.P.Morgan Chase & Co (JPM) A3/A    JPM $m    5Y FRN  3ML +equiv $    10Y $m  30Y

Early Corporate Issuance

Tuesday, January 21st, 2014

Via my friends at Bloomberg: Today at 7:35 AM $b  Morgan Stanley (MS) Baa2/A-          MS $m  5Y FRN  3ML +equiv $b    5Y  IPT +100area $500m  Kookmin Bank  (CITNAT) A1/A 144A/Reg-S 3Y FRN  IPT 3ML +105area  (NoGrow) BAML/C/DB/JPM/SoGen/SCB

Corporate Bond Issuance

Tuesday, January 21st, 2014

There does not appear to be any consensus on corporate bond issuance this week. I have heard talk of $15 billion as well as $25 billion. One should also consider the weather as it appears that a major storm will hit the Northeast today. That should have participants leaving early ...

Opening Addendum

Tuesday, January 21st, 2014

I should have included this in my opening note. Money market rates in China have been quite tight and according to a Bloomberg story one short rate increased  153 basis points yesterday. The PBOC intervened in the market and added CNY 255 billion last night and that is the main ...

January 21 2014 Opening

Tuesday, January 21st, 2014

Prices of Treasury coupon securities tumbled in overseas trading as the holiday weekend in the US ended. The proximate cause of the downtrade appears to be the Hilsenrath story which notes that the FOMC considers the weak December labor report an outlier and not indicative of the general condition of ...