Archive for January, 2014
Thursday, January 23rd, 2014
The Russian ruble is one of the emerging market currencies spinning out of control. Stratfor has a very long analysis of debt in Russia . The central government has very little debt given its size but an immense amount of debt is located in the regions away from the central ...
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Thursday, January 23rd, 2014
The bond market is enjoying quite a rally and resistance has fallen on 10s and 30s as yields print at one month lows on each issue. The catalyst for the rally is the China PMI data overnight as well as some risk aversion which has developed as EM currencies collapse. ...
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Thursday, January 23rd, 2014
The Treasury will sell a new 10 year TIPS bond today. The breakeven spread has narrowed from 230 on January 09 to 223 this morning. My former colleague Richard Gilhooly at TD Securities anticipates that the auction will go well today.He notes that the new issue generally goes well and ...
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Thursday, January 23rd, 2014
Via the good folks at Bloomberg:
$b Province of Ontario (ONT) Aa2/AA- BAML/DB/GS/TD
Global 5Y MS +27 area
$b Dexia Credit Local NY (DEXGRP) Aa3/AA Barc/C/JPM/MS
144A/Reg-S 5Y IPT +Low-60s
$300m Export Development Canada (EDC) Aaa/AAA JPM/SEB Global 3Y 'green' bond MS -1 area
The ...
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Thursday, January 23rd, 2014
The 30 year bond at 100-13 is above the 100-09 resistance (thirty day high price) I cited earlier and the 10 year at 99-14 is right at its 30 day high. Soon we will hear the weeping and gnashing of teeth by the shorts!
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Thursday, January 23rd, 2014
There has been a virtual tsunami of corporate supply since the calendar page flipped to read 2014 and that supply has hit the market with spreads at record low levels. I do not want to overstate the case but I think that there is for the first time some faint ...
Posted in Uncategorized | Comments Off on Corporate Bonds Meet Some Resistance
Thursday, January 23rd, 2014
The Long Bond traded at 100-09+ yesterday and that is the highest dollar price for that issue in the last 30 days. I think sustained trading above that level would give shorts sweaty palms and produce another leg higher in price and if the inverse relationship between price and yield ...
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Thursday, January 23rd, 2014
I had only sparse information when I wrote earlier. As the price action indicates there was broad based buying. Real money bought 4 year and 5 year paper as well as the 10 year sector. Fast money bought 5 year through 10 year paper. The only selling was some real ...
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Thursday, January 23rd, 2014
I was reading the morning FX note of Mark Chandler at brown Brothers Harriman and came across this note on Argentina. The currency is plummeting and the government has actually place a tax on overseas internet sales.
Via Brown Brothers and Mark Chandler:
There was a sharp devaluation yesterday in the Argentine ...
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Thursday, January 23rd, 2014
Prices of Treasury coupon securities have rebounded in overnight trading as a measure of manufacturing strength in China unexpectedly declined to 49.6 from 50.5. That has caused some tumult in equity markets in Asia and the Pacific region as the Hang Seng, the Nikkei and the Australian stock markets have ...
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